NEW YORK (AP) -- Dell Inc. said Monday it's buying data storage company 3Par Inc. for about $1.13 billion cash.
3par, of Fremont, Calif., makes products designed to minimize capacity and energy costs.
Dell is offering $18 per share for 3Par, an 87 percent premium over Friday's closing price for the company of $9.65. In premarket trading, 3Par shares surged to $17.88.
Dell, based in Round Rock, Texas, expects the deal to add to its adjusted profit in fiscal 2012. It says it also plans to invest in added engineering and sales resources in 3Par.
The deal has been approved by the boards of both companies and is expected to close this year.