As reported in TechZone360, early this week Hewlett-Packard proposed a one-third higher bid to acquire the leading global utility storage provider 3PAR, Inc. Today, world’s number two computer maker Dell is back in the game by hiking its earlier bid.

Dell announced today that 3PAR has accepted its increased offer to acquire the storage leader for $24.30 per share in cash, or approximately $1.6 billion cash.  According to Dell, its previous offer to buy 3PAR for $18 per share came with a  provision for matching competing bids. Consequently, the two companies have signed an amendment to the agreement reflecting the new offer price.

The transaction, which is subject to government approvals and the satisfaction of other customary conditions, is expected to close before the end of the year. Based on current estimates, the transaction is expected to be accretive to Dell non-GAAP earnings by its fiscal year 2012.

Both, Dell and HP, have been eyeing the leading storage company to build their cloud computing businesses, which involves bringing software, data storage and other services to customers over the Internet. 3PAR’s multi-tenant, clustered architecture enables these companies to deliver software and hardware as a service, offering an agile, efficient storage infrastructure platform optimized for highly-virtualized data centers and cloud computing.

For last several years, Dell has been investing heavily in the IP and infrastructure companies to provide customers with a comprehensive and differentiated set of storage solutions. The 3PAR acquisition complements and extends the breath of Dell’s storage portfolio, said the computer maker.

With this acquisition, Dell believes that its global brand and broad global customer reach will dramatically accelerate 3PAR’s revenue growth. Dell said that it has track record in integrating and growing acquired companies and nurturing their entrepreneurial and innovative cultures, as illustrated by the dramatic growth of the EqualLogic iSCSI storage business over the last three years. It is committed to providing its data center customers with open, capable and affordable solutions.

“Storage is at the forefront of this strategy,” said Dave Johnson, senior vice president, Dell corporate strategy, in a statement. “With the 3PAR acquisition, Dell with have the broadest set of differentiated storage solutions in the market today,” he added.

The cash tender offer, through a wholly-owned Dell subsidiary, is for all outstanding shares of 3PAR common stock, without interest, and subject to reduction for any federal back-up withholding or other taxes. The offer documents will be amended to reflect the new offer price, but this will not alter the timing of the acquisition.

Unless extended, the tender offer and any withdrawal rights to which 3PAR stockholders may be entitled will expire at midnight, EDT, on Sept. 20, 2010. Following acceptance for payment of shares in the tender offer and completion of the transactions contemplated in the merger agreement, 3PAR will become a wholly-owned subsidiary of Dell.