EMC In Bidding War Over Data Domain
EMC Corp. may end up in a tussle to acquire California-based Data Domain Inc.
On Monday the Hopkinton-based data storage company offered $1.8 billion in cash for Data Domain on the heels of an offer by NetApp Inc. to buy the company for $1.5 billion in cash and stock, according to EMC officials. NetApp is a California-based data storage company.
Today, Net App upped its offer to $1.9 billion in a cash and stock offer.
Data Domain makes products that help users get rid of redundant computer files, which makes more memory available.
EMC claimed on Monday that its all-cash offer is superior to NetApp's original offer for Data Domain. It also said it would tap its existing cash reserves to buy the company and would not need to finance the deal.
EMC said it wants to acquire Data Domain's fast-growing revenue base, its strong data protection-focused management team and sales force and its technology which is complementary to EMC's data storage technology.
"The combination of EMC and Data Domain technologies will strengthen EMC's leadership in the fast-growing and very important next-generation disk-based backup and archive market, and will also result in a business larger than a billion dollars for EMC in 2010," said EMC's president, chairman and CEO Joseph Tucci in a letter to Data Domain, which EMC made public.
EMC had made Data Domain aware of its interest before the NetApp proposal, according to the letter.
This is the second company in two weeks that EMC has proposed to acquire. Last week it announced it would buy privately held Configuresoft Inc. of Colorado for an undisclosed amount. Configuresoft's software is used to configure computer servers.
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