EMC wins NetApp in Data Domain bidding war

By Larry Dignan, ZDNet
Thursday, July 09, 2009 04:32 PM

NetApp said Wednesday that it wouldn't up its offer for Data Domain and a proposed merger agreement was terminated. EMC will now acquire Data Domain for US$33.50 a share in cash.

Earlier this week, EMC raised its bid to US$2.1 billion for Data Domain in an effort to either complete a takeover or at least force NetApp to increase its bid for the third time. However, NetApp was stretching itself thin relative to EMC, which analysts estimate could have continued to bid higher for Data Domain.

Instead, NetApp will get a US$57 million break-up fee from Data Domain. NetApp hinted that it wouldn't up its bid forever on Monday when it noted that it would keep a disciplined acquisition approach.

In a statement, NetApp CEO Dan Warmenhoven said:

"NetApp applies a disciplined approach to acquisitions, one focused intently on creating long-term value for our stockholders. We therefore cannot justify engaging in an increasingly expensive and dilutive bidding war that would diminish the deal's strategic and financial benefits."

Data Domain said in a statement:

"Data Domain's board of directors has unanimously determined that the definitive merger agreement with EMC and the terms of the EMC tender offer are advisable, fair to and in the best interests of Data Domain and its stockholders."

This article was first published as a blog post on ZDNet.com.


WORTHWHILE?

0

0 votes
Blog

Talkback 0 comments

There are currently no comments for this post.


Tech Jobs Now!

Search for your ideal tech job:

OpenAmplify developer's diary - part three: Topic intention comparisons

Web Development

Justin James chronicles his process of using Hapax's OpenAmplify Web service to create an application that can match documents with content that is similar or identical to the source document.


Read more »



 
Virtualize your way to cost savings
Build an infrastructure that is flexible, scalable, and economical, as you strive to become a truly agile business.

Red Hat Outlines Its Virtualization Strategy and Roadmap for 2009
» Watch the video




What Y2K can teach us about 2012

Blog thumbnail

Dec. 21, 2012. It's a big day on the calendar, particularly because some believe it marks the last day of the world as we know it. The apocalypse. Armageddon.

The..... by Eileen Yu

Read more »

Tags

  1. battery
  2. camera
  3. graphics
  4. hard drive
  5. hewlett - packard co.
  6. high tech computer corp.
  7. intel corp.
  8. keyboard
  9. microsoft windows
  10. microsoft windows mobile
  11. mobile
  12. network
  13. notebook
  14. performance
  15. screen
  16. server
  17. storage
  18. touchpad
  19. usb
  20. vat