Feeds

NetApp ups bid for Data Domain

Equals EMC's $30/share

The essential guide to IT transformation

NetApp has revised its bid for Data Domain, lifting its offer to $30/share in cash and stock.

Yesterday EMC trumped NetApp's original $1.5bn cash and stock bid with its own, unsolicited, $30/share, $1.8bn all-cash bid. NetApp values its bid at $1.9bn, net of Data Domain's cash.

The new bid is comprised of $16.45/share in cash, subject to potential adjustments, and $13.55/share in NetApp stock.

Dan Warmenhoven, NetApp's chairman and CEO, said: “Our strategic rationale remains the same and we firmly believe that the combination of our two companies will provide a greater opportunity and risk-adjusted value for Data Domain shareholders, customers, and partners. The complementary nature of the Data Domain and NetApp product lines will result in higher aggregate growth compared to the redundancies that would result with the EMC product line.”

NetApp emphasised the cultural fit between it and Data Domain, saying: "The cultural compatibility between Data Domain and NetApp will maximize the potential for continued innovation from a creative and motivated employee base. This will not only create a meaningful choice for our customers but also lead to a complementary combination with no obstacles to an expeditious close of the acquisition.”

EMC's bid and letter to Data Domain mentioned that its proposal was superior in value and certainty to NetApp's and also faced no impediments due to financial arrangements or due diligence, a claim NetApp is keen to deny. NetApp also believes there would also be no regulatory concerns with its bid, unlike the situation with an EMC bid.

The company says its offer for Data Domain is superior to EMC’s proposal, as it offers a combination of value certainty and the opportunity for Data Domain shareholders to participate in the future success of the combined NetApp and Data Domain entity. In other words the share component will open the doors to higher value in the future than taking EMC's all-cash bid now.

Boost IT visibility and business value

More from The Register

next story
Pay to play: The hidden cost of software defined everything
Enter credit card details if you want that system you bought to actually be useful
HP busts out new ProLiant Gen9 servers
Think those are cool? Wait till you get a load of our racks
Shoot-em-up: Sony Online Entertainment hit by 'large scale DDoS attack'
Games disrupted as firm struggles to control network
Community chest: Storage firms need to pay open-source debts
Samba implementation? Time to get some devs on the job
Silicon Valley jolted by magnitude 6.1 quake – its biggest in 25 years
Did the earth move for you at VMworld – oh, OK. It just did. A lot
Forrester says it's time to give up on physical storage arrays
The physical/virtual storage tipping point may just have arrived
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.