View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
  2. Data
July 8, 2009

NetApp loses, EMC wins Data Domain with $2.1 billion offer

Data Domain and EMC aim to explore the disk-based backup and archive market

By CBR Staff Writer

The bidding over Data Domain’s acquisition has reached a conclusion with EMC emerging as the winner. EMC has entered into a definitive agreement with Data Domain, under which EMC will acquire Data Domain in a cash tender offer for $33.50 per share. The transaction is expected to have a total enterprise value of about $2.1 billion, net of Data Domain’s cash.

Earlier, in an attempt to contest an all-cash offer made by its rival bidder EMC, NetApp has enhanced its bid to $30 per share, valued at about $1.9 billion, net of Data Domain’s cash. Previously, NetApp had proposed $25 per share, valued at around $1.5 billion, net of Data Domain’s cash.

EMC, which also made a $30 per share all-cash offer to contest NetApp’s enhanced bid, said that its offer was superior to the part-stock counter offer made by NetApp.

However, Data Domain has revealed that it had terminated the previously announced merger agreement with NetApp, as revised on June 3, 2009 and has paid NetApp a $57m termination fee under the terms of that merger agreement. Data Domain has also cancelled its special meeting of stockholders scheduled for August 14, 2009, at which stockholders were to consider the NetApp merger.

Joe Tucci, chairman, president and CEO of EMC, said: “This is a compelling acquisition from both a strategic and financial standpoint. We look forward to bringing Data Domain together with EMC to form a powerful force in next-generation disk-based backup and archive.”

Following the completion of the acquisition, which is slated to occur before the end of July, Data Domain is expected to help accelerate EMC’s pace of expansion in the disk-based backup and archive market.

EMC’s all-cash tender offer commenced on June 2 and is scheduled to expire on July 17, 2009, subject to customary tender offer conditions being satisfied. EMC also said that the condition to its tender offer related to the termination of the NetApp merger agreement has been satisfied.

Content from our partners
Unlocking growth through hybrid cloud: 5 key takeaways
How businesses can safeguard themselves on the cyber frontline
How hackers’ tactics are evolving in an increasingly complex landscape

EMC has said that the acquisition is expected to be neutral to the company’s non-GAAP earnings per share in its fiscal year 2009 and accretive to its non-GAAP earnings per share in fiscal year 2010.

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU