Dell has given up on its attempt to acquire virtual storage company 3PAR, after losing out to rival HP.
3PAR, founded in 1999, has been a pioneer in creating the high-end storage infrastructure used for cloud computing systems.
The company became the subject of a fierce bidding war between the two companies when Dell offered $1.15 billion for the company two weeks ago in a bid to boost its data management offerings.
Dell said at the time that 3PAR's technology could help companies cut their storage administration costs by as much as 90 per cent.
The company made a last-ditch attempt to hold on to 3PAR yesterday, trumping HP's previous offer of $30 a share with a renewed bid of $32 per share.
HP responded with an immediate offer of $33 a share, valuing the storage company at a total of $2.4 billion.
And with that, it seems, Dell has had enough.
"We took a measured approach throughout the process and have decided to end these discussions," said Dave Johnson, senior vice president of corporate strategy at Dell.
"We will continue to put the interests of our customers and shareholders at the forefront of all our decisions. Our focus is to create long-term value," added Brian Gladden, Dell's chief financial officer.
3PAR has until midnight on 24 September to accept the deal.
HP says it expects the acquisition to be completed by the end of the year.