Dell to Acquire Virtualized Storage Specialist 3PAR
Dell has signed an agreement to acquire 3PAR, a provider of virtualized storage solutions with data management features, including dynamic tiering and thin provisioning, for multitenant cloud-computing environments. The transaction is valued at approximately $1.15 billion, net of 3PAR's cash. The board of directors of each company approved terms of the acquisition, a company release stated.
Dell said it plans to make 3PAR an integral part of its storage portfolio, including PowerVault, EqualLogic and Dell/EMC. With 3PAR, Dell will offer systems and customer choice at every storage tier, from direct-attach to highly virtualized, clustered SANs. 3PAR was founded in 1999 and is headquartered in Fremont, Calif. After closing, Dell said it plans to maintain and invest in additional engineering and sales capability. There are no plans to move the current operations.
3PAR's storage arrays are designed to overcome the limitations of traditional modular and monolithic arrays. Earlier this month, the company released the InForm Management Console, designed to simplify remote replication configuration and administration, and which provides usability in administering all models of the InServ Storage Server. Integration with the company's Remote Copy software provides autonomic configuration of disaster recovery, which enables users to set up remote replication with InServ T-Class, InServ F-Class or a combination of 3PAR arrays from a single window.
"We have aligned our storage offerings over the last several years to provide our customers choice and value," said Brad Anderson, Dell senior vice president of the enterprise product group. "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."
Under the terms of the agreement, Dell will commence a tender offer to acquire all of the outstanding common stock of 3PAR for $18 per share in cash. The transaction, which is subject to customary closing conditions, is expected to close before the end of the year. Based on current estimates, the transaction is expected to be accretive to Dell non-GAAP earnings in its fiscal year 2012.
"3PAR has consistently provided customers with the ability to do more with less," said David Scott, president and CEO of 3PAR. "With Dell we combine a powerful, virtualized storage platform with an outstanding distribution network to deliver this value to an even broader set of customers."