NetApp to Acquire Data Domain
Storage vendor NetApp will acquire Data Domain that specializes in disk-based heterogenous back-up. Data Domain’s portfolio will extend NetApp’s ability to compete in the increasing number of installations wanting to minimize their reliance on tape.
Under the agreement that NetApp and Data Domain have entered into, NetApp will acquire all of the outstanding shares of Data Domain for $25 per share in cash and stock. The transaction is valued at approximately $1.5 billion.
"This combination is a great opportunity for both NetApp and Data Domain," said Dan Warmenhoven, chairman and CEO of NetApp. "Data Domain is an innovative high-growth company with a complementary product line ideally suited for multi-vendor environments where customers want to minimize their use of tape for backup. NetApp has the distribution channels and international reach to offer Data Domain products to more customers, accelerating growth and market adoption. The combination of our two companies will increase NetApp’s reputation for delivering both outstanding efficiency and operational breakthroughs to customers worldwide."
NetApp intends to operate Data Domain as a product line within NetApp’s product operations organization. The Data Domain sales organization will be integrated with NetApp sales to maximize momentum and access new accounts.
"Notwithstanding the rapid record sales growth Data Domain has experienced over the past 5 years, with NetApp’s distribution channel and customer base, we have an opportunity to accelerate even further," said Frank Slootman, president and CEO of Data Domain.
The Data Domain portfolio brings a complementary offering to NetApp, expanding NetApp’s reach in the market for heterogeneous disk-based backup. Data Domain’s portfolio will extend NetApp’s ability to compete in the increasing number of installations wanting to minimize their reliance on tape. The Data Domain acquisition increases NetApp’s ability to capitalize on the growth of disk-based backup adoption, especially as data deduplication gains traction.
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