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Monday, June 1, 2009
EMC aims to pay $1.8B to buy Data Domain
By Mass High Tech staff
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EMC Corp. has made a cash offer of $30 per share for Data Domain Inc., a deduplication storage firm in California.
Data Domain received an acquisition bid on May 20 from California-based NetApp that represents an amount 20 percent lower than EMC’s $1.8 billion proposition.
The Hopkinton-based data storage giant received unanimous backing from the EMC (NYSE: EMC) board of directors for the buyout proposal. EMC’s immediate tender offer aims to speed the potential transaction.
In a letter addressed to Data Domain president and CEO Frank Slootman, Joseph Tucci, EMC chairman, president and CEO, expressed disappointment at not receiving early notice for a possible business acquisition and only finding out about Data Domain’s buyout potential after NetApp made its proposal.
EMC’s offer is not subject to financing, the company said, and will be funded with the company’s existing cash. EMC outlined its offer using a “two-step structure” that it says would pay Data Domain stockholders quickly.
In the letter, Tucci said the management team at Data Domain would remain intact and operate as a product division of EMC.
Just last week, EMC announced that it will acquire Configuresoft Inc., a Colorado Springs, Colo.-based company making server configuration, change and compliance management software.
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