Data Domain board rejects EMC's $1.8B offer, recommends NetApp merger

Decision gives NetApp leg up in bidding war against rival EMC

Data Domain's board is asking stockholders to reject EMC's unsolicited offer to purchase the company, and instead approve a merger with NetApp.

EMC and NetApp have been fighting a bidding war over the de-duplication and backup vendor throughout June, with EMC offering US$1.8 billion, all in cash; and NetApp offering US$1.9 billion of cash and stock.

NetApp and Data Domain had agreed to an acquisition when EMC joined the fray, leading to an escalation in price. In the latest round, Data Domain Monday announced that its board of directors sent a recommendation to Data Domain stockholders that they reject EMC's offer.

"Our Board is committed to enhancing stockholder value and, after careful review with our outside advisers, determined that the $30 per share EMC offer is not in the best interests of our stockholders at this time," Data Domain CEO Frank Slootman says in a press release. "We are pleased with the revised terms of NetApp's acquisition offer and feel it will provide great value to our shareholders and customers."

Data Domain faulted EMC for not engaging in direct negotiation, and attaching conditions that would allow EMC to terminate its offer at any time. Data Domain also said that it would have to pay NetApp a $57 million termination fee if it agrees to a merger with EMC and terminates the merger agreement with NetApp.

Despite the setback, EMC on Monday reiterated its all-cash offer to purchase Data Domain, and predicted that Data Domain's stockholders will not approve the merger with NetApp.

Join the Good Gear Guide newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags netappemcdata domain

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jon Brodkin

Network World
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Armand Abogado

HP OfficeJet 250 Mobile Printer

Wireless printing from my iPhone was also a handy feature, the whole experience was quick and seamless with no setup requirements - accessed through the default iOS printing menu options.

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?