Dell to buy 3Par for $1.13 billion

SEATTLE (AP) — Dell Inc. said today it is buying 3Par Inc., a maker of enterprise data storage equipment, for about $1.13 billion cash.

Dell is offering $18 per share for 3Par, an 87 percent premium over Friday's closing price for the company of $9.65. In midday trading, 3Par shares surged 87 percent to $18.01.

Dell is the world's second-largest maker of personal computers, behind Hewlett-Packard Co.

As PC prices have fallen in recent years, Dell has worked to establish other, more profitable lines of business, but PCs still make up more than half of Dell's revenue. By comparison, information technology consulting services made up 13 percent of Dell's revenue in the quarter ended April 30, and storage devices made up 4 percent of revenue.

Dell, based in Round Rock, Texas, expects the 3Par acquisition to add to its adjusted profit in fiscal 2012. It says it also plans to invest in added engineering and sales resources at 3Par.