Update: HP Corp. has made a higher offer for 3PAR this evening, beating out the latest offer of $24.30 per share ($1.6-billion valuation)  from Dell. HP is offering $27 per share in an all cash deal, valuing 3PAR at $1.8-billion. HP says it has the capital to make the acquisition and it has already been approved by the board.

3Par Corporation has announced today they have agreed to Dell’s increased bid to acquire the company for $24.30 per share, valuing the acquisition price at $1.6-billion, net of cash.

The 3Par stock (NYSE:PAR) has traditionally traded with low variability, until August 16 when the price jumped from under $10 per share to $18 per share, and only five days later propelling up to $26 per share as a takeover agreement was imminent and the acquisition offers were considered fair going forward.

Under the tender offer deal, there is still a small likelihood that the acquisition could still fall through, as Dell has options to forego the acquisition, but the company would have to pay a $72-million termination fee as per the amended acquisition agreement that reflects the new bid price.

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