The Real 3PAR Bidding War Winner Is…
As Hewlett-Packard and Dell continue the bidding war for 3PAR, the showdown’s biggest winners are cloud, storage and virtualization upstarts that enjoy rising valuations while heading to the VMworld conference (San Francisco, Sept. 30-Aug. 2). Here’s why.
First, the straight news: Hewlett-Packard has raised its 3PAR offer 11% above Dell’s bid, notes Dow Jones News Wires. As of noon eastern on Aug. 27, HP was offering $2 billion, or $30 per share, topping Dell’s offer of $27 per share. Dell originally announced plans to acquire 3PAR for about $1.15 billion in mid-August — then HP stepped in and a bidding war has since escalated.
3PAR claims to be “the leading global provider of utility storage, a category of highly virtualized, dynamically tiered, multi-tenant storage arrays built for public and private cloud computing.”
Small Words, Big Valuations
Clearly, 3PAR’s company description has all the right magic buzzwords:
- utility storage
- public and private cloud computing
3PAR, HP and Dell all are set to attend VMworld, which starts Sept. 30 in San Francisco. Thousands of cloud and virtualization experts will also attend the conference. And it’s safe bet Merger and Acquisition experts will be combing the trade show floor — looking for potential takeover targets that have 3PAR’s characteristics.
So, which potential companies will be targets? DOW Jones notes that:
“Fellow data-storage companies Isilon Systems Inc. (ISLN), CommVault Systems Inc. (CVLT) and Compellent Technologies Inc. (CML) all surged in recent trading as investors looked for the next play in the sector. Analysts have previously suggested Dell should look toward one of these companies, instead of escalating its bidding war with H-P. Isilon was up 4.7%, CommVault was up 2.5%, and Compellent climbed 8.3%.”
Hmmm… The VAR Guy isn’t making any takeover predictions. 3PAR serves higher-end enterprises. But what about the SMB storage market? Hmmm… Our resident blogger does think online storage companies would be prime targets, especially those that serve the managed services market…
In the meantime, HP and Dell are continuing their war to acquire 3PAR. The VAR Guy’s recommendation: 3PAR’s booth at VMworld would be a great location for a final company auction to the highest bigger…