HP Declares Victory Over Dell In 3Par Battle

PALO ALTO, Calif. (TheStreet) -- Hewlett-Packard(HPQ) has declared victory in its bidding war with Dell(DELL) over data storage specialist 3Par(PAR).

HP and 3Par have entered into a "definitive agreement" whereby HP will purchase the storage specialist for $33 a share, or a total price of $2.35 billion, according to a joint statement released after market close.

3Par also announced that it has terminated its merger agreement with Dell, paying the computer maker a $72 million termination fee.

"As part of HP, 3PAR's agile, efficient storage solutions will truly thrive, particularly given HP's ability to accelerate investment in our products and reach new customers around the world," said 3Par CEO David Scott, in a statement.

HP will now use 3Par to boost its Converged Infrastructure strategy, which aims to streamline data center server, storage and networking, and provide cloud computing. In a statement, HP's storage chief Dave Donatelli added that the tech giant plans to invest in 3Par's technology.

The acquisition is expected to close by the end of the calendar year.

Shares of HP and Dell were flat in extending trading, while 3Par shares dipped 2 cents, or 0.06%, after market close.

--Written by James Rogers in New York.

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