Feeds

NetApp ups bid for Data Domain

Equals EMC's $30/share

Maximizing your infrastructure through virtualization

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.

The Power of One eBook: Top reasons to choose HP BladeSystem

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
SHOCK and AWS: The fall of Amazon's deflationary cloud
Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
The triumph of VVOL: Everyone's jumping into bed with VMware
'Bandwagon'? Yes, we're on it and so what, say big dogs
Carbon tax repeal won't see data centre operators cut prices
Rackspace says electricity isn't a major cost, Equinix promises 'no levy'
prev story

Whitepapers

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.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.