Dell said today it plans to buy data storage company 3PAR for $18 per share in cash, or $1.15 billion, extending its storage product offering for cloud computing.
The deal marks an 87 per cent premium over 3PAR's Friday closing price. It is expected to close by the end of the year, the companies said.
With the deal, Dell is attempting to bolster its services business, as have other technology heavyweights like IBM. Services tend to offer higher profit margins than selling PCs.
Previously, Dell, known for its personal computers, bought another storage company, Equallogic, for $1.4 billion.
Dell said the current deal would likely add to its earnings in fiscal 2012. 3PAR was founded in 1999.
Reuters
