EMC trumps NetApp bid for Data Domain
$1.8bn all-cash offer 'substantially superior'
EMC is crashing NetApp's wedding to Data Domain with a trumping bid of $1.8 billion to purchase the company.
Two weeks ago, NetApp proposed to acquire the dedupe specialist for $1.5 billion in cash and stock.
EMC called its all-cash proposal today "superior" to NetApp's offer and said the deal provides Data Domain stockholders with "greater value and certainty."
The $30 per share cash bid represents a 20 per cent premium over NetApp's May 20 announcement.
"Strategically, this combination will further enhance our ability to broaden EMC's best-in-class storage portfolio for the benefit of EMC and Data Domain customers and this, in turn, will accelerate EMC's top-and bottom-line growth rates," said EMC chief executive, Joe Tucci, in a statement. "Our substantially superior proposal is a win-win for both companies."
Tucci said during a conference call that EMC had been attracted by Data Domain's fast-growing revenue base for a while now, but "obviously someone got there first."
He said Data Domain would be run as a product group within EMC with increased R&D investment. Emphasizing that the deal is focused on revenue growth, Tucci added that the combination of EMC's DL4000, Avamar, and Data Domain's product set represents a $1bn business.
There was no immediate comment from Data Domain or NetApp, although Data Domain shares were up 19.23 per cent at closing. ®