In the end HP raised its offering by $3 to $33 beating Dells $32 dollar a share offering, that was enough to seal the deal with HP.
On Thursday 3PAR's shares closed up 2.5 percent at $32.88 dollars a share on the New York Stock Exchange. 3PAR usually shared at about $10 most of the year until Dell announced its initial offering at $18 dollar a share.
The deal values 3PAR at over eight time’s sales, and many analysts said that was too high for a company that has barely ever made a profit since it was founded in 1999. Multiples above five are considered lofty in technology deals.
Most other people say 3PAR is worth it. The company competes with bigger rival EMC Corpin data storage, considered by most as a key part of "cloud computing".
The business is seeing cloud computing as a god send seeing as how multimedia and video is taxing out data center, but more on cloud computing in latter articles.
HP's was being very aggressive in its negotiating and that is a good sign showing that they are in now way going to sidelined in deals in the absence of a CEO. CEO Mark Hurd resigned last month in a scandal surrounding inaccurate expense reports related to a female marketing contractor.
August was a busy month for deal making in fact the busiest in over a decade. What spurred this you might ask? Well I have the answer. Low interest rates, high cash piles and low stock market values encouraged companies to start negotiating deals.
If you have any questions or comments email me at jamie.hammonds@gmail.com
Until Next time,
Jamie Hammonds
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