EMC begins subsequent offer for Data Domain; merger to close in July

By Lisa Kerner

Charlotte, N.C., July 20 - EMC Corp. boosted its ownership of Data Domain, Inc. to 82.1% after Data Domain shareholders tendered approximately 78.2% of the company's outstanding shares in its tender offer, which ended Friday.

The percentage of shares tendered does not include shares tendered by notice of guaranteed delivery.

EMC began a subsequent offering period to purchase the remaining Data Domain shares at the same $33.50-per-share offer price.

The subsequent offering period ends at midnight ET on Wednesday.

According to EMC, it expects to complete the acquisition of Data Domain via a short-form merger later in the month.

EMC said that once the merger is complete, Data Domain will become the foundation of a new product division within EMC's storage business focused on the development and delivery of next-generation disk-based backup, recovery and archive solutions.

Data Domain president and chief executive officer Frank Slootman will lead the new EMC product division, which EMC expects to achieve $1 billion in revenue in 2010.

NetApp deal terminated

As previously reported, Data Domain agreed to be acquired by EMC for $33.50 per share in cash and terminated its merger agreement with NetApp, Inc.

Data Domain paid a $57 million termination fee to NetApp, a Sunnyvale, Calif.-based data storage company, and also canceled its Aug. 14 special meeting of stockholders.

Under NetApp's offer, Data Domain stockholders would have received $30.00 per share, $16.45 of which would have been paid in cash and the remainder in shares of NetApp common stock.

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.

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