The ongoing battle to buy 3Par has finally ended after a bidding war erupted between HP and Dell. HP have agreed to pay $2.35 billion and Dell didn’t counter the final bid.
This is a $33 per share cash offer and it has been agreed by boards of both HP and 3Par, released in an official statement last night. Dell managed a $32 per share offer but have stepped down at HP’s latest counter bid.
The HP offer is staggering as it is an amount three times higher than the company is worth, which was valued at $9.65 based on Aug 13th closing price information. This figure is also about 10 times 3Par’s revenue over the last year.
“It looked like HP was willing to bid for this asset at any price,” said Shaw Wu, an analyst at Kaufman Bros. in San Francisco who recommends buying HP shares and does not own any himself. “It’s tough for Dell or anyone to compete with a determined bidder.”
KitGuru says: HP have shown their greater resources, but as to whether the takeover was a good deal has yet to be seen.