Dell Increases Offer For 3PAR

Dell has upped its bid to acquire data storage technology manufacturer 3PAR following an offer from rival Hewlett-Packard (HP).

The company has raised its offer from $1.15 billion to $1.6 billion, or $24.30 per share.

Dell said that 3PAR has accepted its offer and has signed a binding agreement to acknowledge the new deal.

The move comes after IT giant HP intensified the bidding war by offering 3PAR a price of $24 per share, 33 per cent higher than the $18 per share initially offered by Dell.

The 3PAR board had encouraged Dell to offer a better price before signing a deal with HP.

3PAR offers technology that allows companies to store massive amounts of data such as video clips, e-mail, reports and presentations.

“Over the past several years, Dell has invested heavily in the IP and infrastructure necessary to provide customers with a comprehensive and differentiated set of storage solutions,” Dell said in a statement.

"The 3Par acquisition complements and extends the breath of Dell's storage portfolio."