NetApp ups offer for Data Domain with $1.9 billion
04 Jun 2009
The bidding war for the acquisition of Data Domain, a vendor of deduplication storage systems escalated yesterday, when NetApp increased its offer after EMC Corp made a $30 a share in cash and stock offer to the storage company.
NetApp and Data Domain announced yesterday that they have entered into a revised acquisition agreement under which NetApp will acquire all of the outstanding shares of Data Domain common stock for $30 per share in cash and stock in a transaction valued at approximately $1.9 billion, net of Data Domain's cash.
The Hopkinton, Massachusetts-based and Fortune 500 company, EMC Corp, a provider of information infrastructure systems, software and services said that its all-cash 1 June offer to acquire all of the outstanding common stock of Data Domain, for $30 per share is superior to the part-stock counter offer for Data Domain made by NetApp yesterday.
On 20 May, the Sunnyvale, California- based NetApp proposed to acquire all of the outstanding shares of Santa Clara, California-based Data Domain common stock for $25 per share in cash and stock. The transaction had valued Data Domain at approximately $1.5 billion of the company's net cash.
On 1 June, EMC Corp, rivaled and upped the stakes by offering $30 per share in cash, valuing Data Domain at approximately $1.8 billion, net of Data Domain's cash.
EMC's all-cash offer represented a 20-per cent premium to the cash and stock offer made by NetApp for Data Domain on 20 May 2009.
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