EMC Places $1.8 Million Offer for Data Domain
EMC has proposed a takeover of storage vendor — Data Domain. The total value of the proposed transaction is around $1.8 million, topping NetApp s $1.5 million offer last month.
EMC has proposed to acquire all of the outstanding common stock of Data Domain for $30.00 per share in cash, in a transaction with a total enterprise value of approximately $1.8 billion, net of Data Domain s cash. EMC s all-cash offer represents a 20% premium to the cash and stock offer made by NetApp for Data Domain on May 20, 2009.
EMC said its proposal is not subject to a financing or due diligence contingency, and the company will use existing cash balances to finance the transaction.
Joe Tucci, chairman, president, and CEO of EMC called the deal a win-win situation for both companies. He said, Strategically, this combination will further enhance our ability to broaden EMC s best-in-class storage portfolio for the benefit of EMC and Data Domain customers and this, in turn, will accelerate EMC s top-and bottom-line growth rates.
Both EMC and NetApp have shown interest in Data Domain as it will allow them to cement their position in disk-based backup & archive market, while availing of its data de-duplication technology.
The deal will result in a business larger than a billion dollars for EMC in 2010. We expect the transaction with Data Domain to be accretive to EMC s 2010 non-GAAP diluted earnings per share, Tucci said.
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