By Lisa Kerner
Charlotte, N.C., July 8 - Data Domain, Inc. agreed to be acquired by EMC Corp. for $33.50 per share in cash and terminated its merger agreement with NetApp, Inc.
The transaction with EMC is expected to have a total enterprise value of approximately $2.1 billion, net of Data Domain's cash, a Data Domain news release said.
Data Domain paid a $57 million termination fee to NetApp under the companies' revised agreement and also canceled its Aug. 14 special meeting of stockholders.
Under NetApp's offer, Data Domain stockholders would have received $30.00 per share, including $16.45 in cash and shares of NetApp common stock equal to an exchange ratio.
The board of directors of Data Domain unanimously recommends that the company's stockholders tender their shares in EMC's offer that began on June 2 and ends at midnight on July 17.
EMC said it expects the acquisition to be neutral to its non-GAAP earnings per share in its fiscal year 2009 and accretive to its non-GAAP earnings per share in fiscal year 2010.
The transaction could be completed before the end of July, the companies said.
According to EMC, Data Domain will help accelerate EMC's expansion in the next-generation disk-based backup and archive market.
EMC, a Hopkinton, Mass., information technology and solutions developer, originally offered $30.00 per share for each Data Domain share.
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.
| Acquirer: | EMC Corp.
|
| Target: | Data Domain, Inc.
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| Announcement date: | July 8
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| Price per share: | $33.50
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| Expected closing: | End of July
|
| Stock price of target: | Nasdaq: DDUP: $33.95 on July 7
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