HP tops Dell's bid for 3PAR

Hewlett-Packard has outbid Dell for the data storage firm 3PAR, according to a report from the technology blog TechCrunch. HP's bid of $24 per share, or $1.6 billion, is 33 percent above the $1.15 billion offer Dell announced last week.

Both companies prize 3PAR for its expertise in the high-end market for cloud data storage, which is increasingly the preferred choice for companies versus purchasing and maintaining their own data centers. HP acknowledged during a conference call with reporters that a previous bid for 3PAR had been rejected in favor of Dell's offer.

“HP’s proposal offers superior value to 3PAR’s shareholders. Our global reach, strong routes to market and commitment to innovation uniquely position HP as the ideal fit for 3PAR,” said Dave Donatelli, executive vice president and general manager of Enterprise Servers, Storage and Networking.

In a letter sent to the 3PAR board, HP Chief Strategy and Technology Officer Shane Robison extends the cash offer and touts the companies' shared Silicon Valley heritage. He writes that HP is ready to execute the merger agreement immediately and hopes the transaction would close by the end of the calendar year.

"We have great respect for 3PAR’s management team and its employee base, and are excited about the prospect of working together going forward. Our long track record of acquiring companies and integrating them seamlessly into our organization gives us great confidence that this will be a successful combination," Robison writes.

—Cross-posted from Hillicon Valley.