Feeds

EMC wins Data Domain with $2.1bn offer

NetApp blinks

Boost IT visibility and business value

NetApp can't beat what EMC is offering for Data Domain. The company said on Wednesday it will not revise its proposal to purchase Data Domain to outdo EMC's new uprated bid.

Data Domain said it coughed up a $57m termination fee to NetApp under the terms of its previous merger agreement, ending a six-week bidding war over the data deduplication specialist.

EMC's winning all-cash bid of $33.50/share values Data Domain at about $2.1bn.

The Data Domain board had previously rejected EMC's unsolicited all-cash $30/share offer in favor of an equally-priced bid from NetApp in both cash and stock. Both companies wanted to assimilate Data Domain's market-leading dedupe storage array products into their own offerings.

NetApp CEO Dan Warmenhoven said in a statement that while buying Data Domain would have produced benefits for customers and employees, the company is "highly confident" in its existing competitive strengths.

"NetApp applies a disciplined approach to acquisitions, one focused intently on creating long-term value for our stockholders," he said. "We therefore cannot justify engaging in an increasingly expensive and dilutive bidding war that would diminish the deal's strategic and financial benefits."

In other words, it's not worth going hungry just to say you beat EMC.

Data Domain's board of directors said they've unanimously agreed to a merger with EMC and said the terms are in the best interest of Data Domain and its stockholders. ®

Build a business case: developing custom apps

More from The Register

next story
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
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.
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.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.