How did HP beat Dell in 3PAR bid? (3)

Since going public in 2007, 3PAR has yet to report positive operating profits. However, the company has operated at substantially higher gross margins than either Dell or HP, reflecting overall industry trends seen between software and hardware industries.

Even before Dell bowed out of the race on Thursday, analysts had been long predicting HP would take over 3PAR in the end. In an informal survey conducted by Reuters on Monday, the majority of eight technology investors and analysts interviewed expected Dell to concede either at HP' s standing two billion dollar offer or shortly after.

After HP rebuffed Dell' s counteroffer at 32 dollars per share with its final 33 dollar per share offer, Dell officially acknowledged the end of bidding contest.

"We took a measured approach throughout the process and have decided to end these discussions," said Dave Johnson, Dell' s senior vice president of corporate strategy, in a statement released by company earlier today. As part of the final agreement, Dell will be entitled to a 72 million dollar breakup fee.

From a strategy standpoint, most analysts also see this final combination as the most beneficial.

"HP can benefit from the experience of its go-to-market alliance with 3PAR ... I believe this acquisition will provide a solid impetus towards HP' s stabilization, and perhaps even help settle the HP leadership crisis more quickly," said Chandras, referring to HP' s current vacancy in the CEO role.
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