EMC wants to buy Data Domain for $30 per share despite NetApp offer

By Lisa Kerner

Charlotte, N.C., June 1 - EMC Corp. said it offered to acquire all of the outstanding common stock of Data Domain, Inc. for $30 per share in cash.

The transaction has a total enterprise value of approximately $1.8 billion, net of Data Domain's cash.

According to EMC, the all-cash offer is a 20% premium to NetApp Inc.'s May 20 offer for Data Domain.

NetApp, a Sunnyvale, Calif.-based data storage company, offered to buy Data Domain for $25 per share in a cash-and-stock deal valued at approximately $1.5 billion, net of Data Domain's cash.

EMC believes its offer is superior to NetApp's and said it will fund the deal using existing cash balances. In addition, EMC's offer is not subject to financing or due diligence contingencies.

Joe Tucci, EMC chairman, president and chief executive officer, called the "substantially superior proposal" a "win-win for both companies."

"The combination of EMC and Data Domain technologies will strengthen EMC's leadership in the fast-growing and very important next-generation disk-based backup and archive market, and will also result in a business larger than a billion dollars for EMC in 2010," Tucci said in a company news release.

EMC, located in Hopkinton, Mass., develops and supports information infrastructure technology and solutions.

Data Domain provides deduplication storage appliances for disk-based backup, archiving and network-based disaster recovery. The company is located in Santa Clara, Calif.

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