EMC wins bidding war with $2.1b offer for Data Domain
EMC Corp. of Hopkinton has won its battle to acquire Data Domain Inc., after rival data storage company NetApp Inc. dropped out of the high-stakes bidding war. The move comes two days after EMC boosted its bid for Data Domain to $2.1 billion.
"NetApp applies a disciplined approach to acquisitions, one focused intently on creating long-term value for our stockholders," said NetApp chief executive Dan Warmenhoven. "We therefore cannot justify engaging in an increasingly expensive and dilutive bidding war that would diminish the deal's strategic and financial benefits."
The board of Data Domain, which had unanimously accepted an earlier offer from NetApp, yesterday unanimously accepted the latest EMC all-cash bid of $33.50 per share. As a consequence of breaking its deal with NetApp, Data Domain has paid NetApp a termination fee of $57 million.
"It appears that the bank has won," said Brian Babineau, senior storage industry analyst at Enterprise Strategy Group in Milford. "Cash is king, and he who has the most money usually wins at the end of the day."
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