NetApp has revised its bid to $30 per share to acquire Data Domain, valued at approximately $1.9 billion, net of company’s cash.
NetApp has enhanced its bid to contest an all-cash offer made by rival bidder EMC Corp.
EMC, which made a $30 per share all-cash offer to acquire all of the outstanding common stock of Data Domain, said that its offer is superior to the part-stock counter offer made by NetApp.
Joe Tucci, EMC’s chairman, president and CEO said, We are proceeding with our superior cash tender offer, which is not subject to any financing or due diligence contingency. We do not believe that the Data Domain stockholders will approve the merger transaction with NetApp.
EMC said that it will use existing cash balances to finance the transaction.
Both NetApp and EMC believe that acquiring Data Domain’s data protection storage appliances business will create meaningful benefits to their related businesses.
Earlier, NetApp has made a proposal to acquire Data Domain’s common stock for $25 per share, valued at around $1.5 billion, net of Data Domain’s cash.
Frank Slootman, president and CEO of Data Domain, said: We are pleased with the revised terms of NetApp’s acquisition offer and feel it will provide great value to our shareholders and customers.
The board of Data Domain has unanimously approved the revised transaction agreement. The deal is anticipated to close in 60-110 days subject to customary closing conditions including regulatory approval.
NetApp intends to operate Data Domain as a product line within NetApp’s product operations organisation. The company said that the Data Domain sales organisation will be integrated with its sales to maximise momentum and access new accounts.
