Computer giant Dell has agreed to take over data storage firm 3Par after tabling an improved offer for the company.
Dell says its new offer of $24.30 a share has been accepted by 3Par, following a battle for the company with rival Hewlett Packard (HP).
3Par has been the subject of a bidding war between
Dell and Hewlett Packard
The new agreement values 3Par at $1.6bn (£1bn), matching an earlier offer tabled by HP on Monday.
Dell said the deal would "dramatically accelerate" 3Par's revenue growth.
"Dell has a demonstrated commitment and track record in integrating and growing acquired companies and nurturing their entrepreneurial and innovative cultures," the company said in a statement.
The bidding war for 3Par reflects the growing interest in the industry in "cloud computing" - technology that allows users to access files or services remotely over the internet, rather than just from their own local servers.
3Par says its storage systems can cut storage administration costs by up to 90% and infrastructure costs by up to 75%.
Bid battle
3Par had already signed a takeover agreement with Dell last week, in a deal worth around $1.15bn.
But that included a provision for Dell to match competing bids.
In New York, shares in 3Par fell more than 1.6% following the announcement, suggesting that investors expected a higher bid from Dell.
Shares in both Dell and Hewlett Packard rose.
Dell says its new offer of $24.30 a share has been accepted by 3Par, following a battle for the company with rival Hewlett Packard (HP).
3Par has been the subject of a bidding war between
Dell and Hewlett Packard
The new agreement values 3Par at $1.6bn (£1bn), matching an earlier offer tabled by HP on Monday.
Dell said the deal would "dramatically accelerate" 3Par's revenue growth.
"Dell has a demonstrated commitment and track record in integrating and growing acquired companies and nurturing their entrepreneurial and innovative cultures," the company said in a statement.
The bidding war for 3Par reflects the growing interest in the industry in "cloud computing" - technology that allows users to access files or services remotely over the internet, rather than just from their own local servers.
3Par says its storage systems can cut storage administration costs by up to 90% and infrastructure costs by up to 75%.
Bid battle
3Par had already signed a takeover agreement with Dell last week, in a deal worth around $1.15bn.
But that included a provision for Dell to match competing bids.
In New York, shares in 3Par fell more than 1.6% following the announcement, suggesting that investors expected a higher bid from Dell.
Shares in both Dell and Hewlett Packard rose.