Dell signed an agreement to acquire storage virtualization vendor 3Par for approximately $1.15 billion, according to Dell.
Dell is hoping 3Par's technology can accelerate its push into the "virtual era" by offering a multitenant, clustered storage architecture that can reduce storage administration costs by up to 90 percent and infrastructure costs by up to 75 percent, according to Dell.
3Par's storage arrays are designed to overcome traditional limitations of modular and monolithic arrays, according to Dell. The 3Par offerings, which include the branded InSpire architecture, InServe storage servers, InForm operating system and additional InForm software applications will complement Dell's PowerVault, EqualLogic and Dell/EMC storage offerings, according to Dell.
"We have aligned our storage offerings over the last several years to provide our customers choice and value," said Brad Anderson, senior vice president of Dell's Enterprise Product Group, in a statement. "3Par brings the same values of performance, agility and ease of use to higher-end, virtualized storage deployments as EqualLogic does for the entry level and midrange, rounding out our industry-leading solutions portfolio."
Dell plans to purchase 3Par for $18 per share in cash, an 87 percent premium over 3Par's closing price last Friday of $9.65 per share. 3Par's 52-week high is $13.67 per share.
3Par, based in Fremont, Calif., was founded in 1999. After the acquisition closes, Dell plans to maintain and invest in additional engineering and sales resources and there are no plans to move 3Par's current operations, according to Dell.
3Par reported a $1.8 million loss, or 3 cents per share, on $54.3 million in sales for the first quarter ended June 30. For the 2010 fiscal year ended March 31, 3Par lost $3.2 million, or 5 cents per share, on $168.0 million in sales.
A conference call is scheduled for 12 p.m. EST Monday to discuss the transaction.