Shares of 3Par Inc. (PAR), a data-storage co. that specializes in virtualization-storage services, spiked more than 85% Monday morning after Dell (DELL) unveiled plans to pay $1.15 billion, or $18 a share, for the Fremont, Calif.-based company, an 87 percent premium to 3Par’s Friday closing price of $9.65.
As trading progressed 3Par shares soared to an intraday high of $18.12, posting the biggest gain in Russell 2000 Index. Dell, the world’s third-largest PC maker, said it made the move in order to build on its storage-product lineup and to compete with other technology services companies like IBM (IBM) and Hewlett-Packard (HPQ).
The transaction has been approved by the boards of both co.’s and is expected to close at the end of this fiscal year. This is Dell’s fifth 2010 acquisition.
3Par gained $8.30, or 86.01 percent, to $17.95 at 12:25 p.m. ET in NYSE trading. Round Rock, Texas-based Dell lost 5 cents, or 0.42 percent, to $11.96.