Skip to main content

Storage Suitors Lining Up To Acquire 3PAR?

A report on the technology blog Barron's has pointed out that some of the big players in the data storage domain could be looking forward to acquire data storage firm 3PAR Inc., primarily owing to the company’s focus on high-end storage segment.

Shares of 3PAR Inc. skyrocketed by 15 percent on Monday after Barron’s reported that the company is prepping itself as an attractive target for some data storage giants, including IBM, HP, or NetApp.

The company has already garnered a significant reputation in the data storage sphere, with its cutting-edge technologies in thin provisioning, as well as designing top-notch clustered storage architecture.

Dubbed as “Utility Storage”, the handy architecture, according to the company, could help users to bring down their storage expenditure to half of the costs they had to bear initially.

The report further cited 3PAR as one of the beneficiaries of the expected surge in IT spending next year, and quoted that with as much as $100 million in cash, along with small debt, the company has done exceptionally well to wither away the aftermaths of economic recession.

Analysts are forecasting its revenue to grow by a considerable 22 percent to reach $236 million for the financial year ending in March next year, Thomson Reuters reported.

Our Comments

For cash rich companies, getting 3PAR could well prove to be a judicious investment for the future, when the global economy eventually becomes better. One name that hasn't yet been mentioned is Cisco; one however can expect the networking giant to be interested in venturing in high end storage to expand its portfolio.

Related Links

3PAR: Doing More With Less (opens in new tab)

(Barron’s)

3PAR Shares Jump on Barron's M&A Comments (opens in new tab)

(ABCNews)

3PAR could be attractive takeover target -Barron's (opens in new tab)

(Reuters)

3PAR bounces on takeover chatter (opens in new tab)

(Register)

Storage Giants Circling 3Par: Report (opens in new tab)

(Internet News)

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at ITProPortal.com where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.