Dell has agreed to acquire enterprise data centre storage technology maker 3PAR for $1.15 billion.
According to news agency the Associated Press, Dell plans to pour investment into 3PAR's engineering and sales division.
3PAR offers technology which allows customers to efficiently utilise the available storage space on data centres by thin provisioning techniques.
The acquisition will allow Dell to compete with NetApp, EMC, IBM and Hewlett-Packard who started to offer similar technology since 3PAR first developed it.
Dell plans to offer 3PAR technology to cloud computing users who have to deal with storage issues when using a common data centre.
The company allows customers of its Utility Storage tools to reduce the administrative and power costs compared to other storage system management offerings.
The acquisition is a part of Dell CEO Michael Dell's plans to expand the reaches of his company by acquiring companies in different computer and server related verticals.