3PAR Accepts Dell's Increased Price Of $24.30 Per Share, With Total Enterprise Value Of $1.6 Billion

ROUND ROCK, Texas--(BUSINESS WIRE)--Dell announced today that 3PAR has accepted its increased offer to acquire the storage leader for $24.30 per share in cash, or approximately $1.6 billion, net of 3PAR's cash. 3PAR is a leading global provider of storage solutions with advanced data management features for multi-tenant cloud-computing environments.

Dell had previously signed an agreement to acquire 3PAR for $18 per share, with a provision for matching competing bids. Dell and 3PAR have signed an amendment to the agreement reflecting the new offer price.

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. The 3PAR acquisition complements and extends the breath of Dell's storage portfolio. Dell's capabilities offer customers a unified enterprise environment that includes all storage categories from direct attached storage (DAS) to fibre channel.

Dell believes that its global brand and broad global customer reach will dramatically accelerate 3PAR's revenue growth. Dell has a demonstrated commitment and track record in integrating and growing acquired companies and nurturing their entrepreneurial and innovative cultures, as illustrated by the dramatic growth of the EqualLogic iSCSI storage business over the last three years.

Dell is committed to providing its data center customers with open, capable and affordable solutions. "Storage is at the forefront of this strategy," said Dave Johnson, senior vice president, Dell corporate strategy. "With the 3PAR acquisition, Dell with have the broadest set of differentiated storage solutions in the market today."The cash tender offer, through a wholly-owned Dell subsidiary, is for all outstanding shares of 3PAR common stock, without interest, and subject to reduction for any federal back-up withholding or other taxes. The offer documents will be amended to reflect the new offer price, but this will not alter the timing of the acquisition. Unless extended, the tender offer and any withdrawal rights to which 3PAR stockholders may be entitled will expire at midnight, EDT, on Sept. 20, 2010. Following acceptance for payment of shares in the tender offer and completion of the transactions contemplated in the merger agreement, 3PAR will become a wholly-owned subsidiary of Dell.

The transaction, which is subject to government approvals and the satisfaction of other customary conditions, is expected to close before the end of the year. Based on current estimates, the transaction is expected to be accretive to Dell non-GAAP earnings by its Fiscal Year 2012.