Data Domain rejects EMC offer in favor of cash-and-stock NetApp deal

By Lisa Kerner

Charlotte, N.C., June 15 - Data Domain Corp.'s board of directors recommends that its stockholders reject EMC Corp.'s offer and not tender their shares in EMC's $30.00-per-share cash tender offer that ends on June 29.

The board urged stockholders to vote in favor of the revised merger agreement with NetApp, Inc. in which NetApp will acquire Data Domain in a cash-and-stock transaction valued at $30.00 per share, or approximately $1.9 billion net of Data Domain's cash.

Data Domain's board unanimously approved the revised offer that gives its stockholders the right to receive a cash amount of $16.45 plus shares of NetApp common stock equal to an exchange ratio for each Data Domain share.

NetApp originally agreed in May to acquire Data Domain for $25.00 per share, or approximately $1.5 billion.

EMC said it does not believe that Data Domain shareholders will approve the NetApp deal.

"We believe that EMC's $30 all-cash offer is superior and delivers to Data Domain price certainty and price protection as well as the ability to close promptly," EMC chairman, president and chief executive officer Joe 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.

NetApp is a Sunnyvale, Calif.-based data storage company.

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