FREMONT, Calif. (
is setting itself up as an attractive takeover target for larger tech companies which are eyeing smaller firms in the $14 billion data storage business, according to a
3Par, with $195 million in estimated revenue, reportedly has cheaper, more advanced data storage technology than its much larger rivals such as
Kevin Hunt, a senior technology analyst at Hapoalim Securities, told
that an initial offer "could be north of $15, putting a value of just under $1 billion on the company." He further added, "But, once in play, that takeout value could be quickly pushed up to $20 or more. There are just not that many firms out there that the big players would wish to buy."
Shares of 3Par closed Thursday at $10.28.
3Par has a customer list which includes
, as well as the U.S. Census Bureau and the Department of Justice,
3Par's technology is regarded as especially apt for the new generation of cloud-computing providers that require the maximum in flexibility, according to the report which noted that both
made recent acquisitions in this field.
With $100 million in cash and only minimal debt, 3Par's finances are in good shape,
noted. Earnings are expected to jump from 6 cents a share this year to around 21 cents to 24 cents next year and 40 cents the year after.