NetApp ups its offer for Data Domain


NetApp has improved its offer for Data Domain today, although EMC still believes its proposition is "superior."

NetApp has upped its offer to $30 (18) a share in cash and stock, which works out as $1.9 billion in total, to combat the $30 a share pure cash offer from EMC earlier this week.

Frank Slootman, president and chief executive (CEO) of Data Domain, said: "We are pleased with the revised terms of NetApp's acquisition offer and feel it will provide great value to our shareholders and customers."

However, Joe Tucci, chief executive of EMC, still feels his offer is better for the company. "EMC's all-cash tender offer remains superior to NetApp's proposed part-stock merger transaction," he said in a statement. "We are proceeding with our superior cash tender offer, which is not subject to any financing or due diligence contingency."

He does not believe Data Domain's shareholders will agree with NetApp's terms. "EMC urges the Board of Directors of Data Domain to not take any actions that would further impede a transaction that is a superior alternative for Data Domain's shareholders," Tucci said.

Dan Warmenhoven, chairman and chief executive of NetApp, believes his firm is the better choice. "The synergies between our two companies will enable us to accelerate growth and market adoption more so than as separate entities. This partnership will create meaningful benefits for our global customers."

Jennifer Scott

Jennifer Scott is a former freelance journalist and currently political reporter for Sky News. She has a varied writing history, having started her career at Dennis Publishing, working in various roles across its business technology titles, including ITPro. Jennifer has specialised in a number of areas over the years and has produced a wealth of content for ITPro, focusing largely on data storage, networking, cloud computing, and telecommunications.

Most recently Jennifer has turned her skills to the political sphere and broadcast journalism, where she has worked for the BBC as a political reporter, before moving to Sky News.