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Data Domain to consider EMC proposal; no change in deal with NetApp
By Lisa Kerner
Charlotte, N.C., June 4 - Data Domain Corp.'s board of directors said it will review the unsolicited offer from EMC Corp. to acquire the company for $30.00 per share in cash.
The company's shareholders are advised to defer making a decision on the offer until Data Domain makes its recommendation, according to a Data Domain news release.
EMC began a tender offer for Data Domain shares on Tuesday. The tender offer will expire at midnight ET on June 29, unless extended.
According to EMC, it will fund the deal using existing cash balances. In addition, EMC's offer is not subject to financing or due diligence contingencies.
On Wednesday, EMC said it believes its offer is superior to NetApp Inc.'s revised offer for Data Domain.
As previously reported, NetApp raised its offer to $30.00 per share in a cash-and-stock deal valued at $1.9 billion.
NetApp announced in May that it agreed to acquire Data Domain for $25.00 per share in a cash-and-stock deal valued at approximately $1.5 billion, net of Data Domain's cash.
The revised offer gives Data Domain 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. The exchange ratio will be determined based on the closing average, as defined in the merger agreement.
Data Domain's board of directors unanimously approved the revised agreement.
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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