Storage News

Dell's "Twin Storage" Deals

A story by Seeking Alpha reported that both 3PAR and EqualLogic will soon end up inside Dell. To acquire these companies and prevent them from selling public shares, Dell had to pay a high premium. The acquisition is being described as a clear sign that the tech M&A market has yet to recover from the credit crisis.

"As any company – including 3PAR and Dell – can attest, the bull market ended abruptly and painfully just days after the EqualLogic trade sale. So now we’re left with a market where Dell can offer the highest-ever price for 3PAR shares (representing a staggering 87% premium) and still get a 'half-off discount' on valuation compared to its earlier billion-dollar storage deal. But then Dell knows all about discounts over that time period. The company’s market cap has been cut in half (to $25bn from $50bn) from the day it announced its EqualLogic acquisition to Monday’s announcement of the 3PAR purchase."