After Dell called off its bid for 3Par, data storage Company, Hewlett-Packard gained victory over acquiring the Company on Thursday.
The computer giant HP is hopeful that the deal will be complete by the end of December. The deal got finalized at an offer price of around $2.4bn or $33 a share. 3 Par nullified its merger agreement with Dell by paying it a $72m fee.
The purchase offer of $18 was accepted publicly by 3 Par initially, but the competition between Dell and HP raised the price of the offer.
As told by a person familiar with the matter, the bidding price made by HP was not matching with Dell’s in the early stages, when former had no idea that Dell was also in race.
The acquisition of 3 Par was desired by Dell as well, as it would widen the area of the Company through cloud computing.
There were a number of rivalry bids raised by both the Companies, but Dell stepped back the last week, after making its last bid of $32 a share.
On August 13, the stock price of 3 Par ended at $9.65, which was three-fold HP’s bid and the purchase price is ten times more than the 3Par's revenue over the past four quarters.
Shaw Wu, an analyst at Kaufman Bros. in San Francisco said, "It looked like HP was willing to bid for this asset at any price. It's tough for Dell or anyone to compete with a determined bidder".
- Bitcoin investors call for protection after collapse of two major Bitcoin platforms
- South Yorkshire cottage has been crashed into by 40 cars over last 14 years
- Doctors to Reconstruct People's Faces with Stem Cells from their Fat
- $10 Urine Test is Twice as Accurate as Existing Tests for Prostate Cancer Diagnosis
- People Shorter in height May be Short of Intellect too: Study