3PAR shareholders must be doing a vigorous jig of joy.
Even if Dell’s previously announced acquisition of the company, for approximately $1.15 billion in cash, had gone ahead, 3PAR would have achieved a rich premium on its pre-buyout valuation. Now, though, with HP belatedly rushing back to the negotiating table — apparently HP had discussed acquiring 3PAR before Mark Hurd’s alleged indiscretions came to light — 3PAR’s backers stand to make out like highway bandits. (Actually, they’ll make out like highway bandits on a poorly policed, well-traveled thoroughfare used by affluent commuters in luxury vehicles.)
Indeed, news hit the wire this morning that HP has proposed to acquire the cloud-centric virtualized-storage vendor for $24.00 per share in cash, or an enterprise value of $1.6 billion. That amounts to approximately 33 percent more than Dell had proposed to pay, which represented a whopping 85-percent premium on 3PAR’s closing price immediately before that apparently short-lived deal was announced.
HP Waives Termination-Fee Provision
HP is proposing acquisition terms that are identical to those Dell specified save for one exception: HP dropped a provision for a termination fee. Speaking of which, now that it appears HP has waylaid Dell on the way to the altar, the latter will qualify for special dispensation of $53.5 million from 3PAR for refusing to consummate the corporate union.
Effectively, that breakup fee will transferred from HP to 3PAR to Dell. Some 3PAR shareholders might be upset at seeing their mountain of lucre slightly diminished as a result of the payout, but I’m fairly confident they’ll get over it.