EMC wins $2.1-billion bidding war for Data Domain
09 Jul 2009
Information infrastructure technology giant EMC has beaten rival NetApp yesterday to acquire Data Domain for $2.1 billion in the month-long bidding war.
Santa Clara-based Data Domain, with 2008 sales at $274 million, said yesterday that it had entered into a definitive merger agreement with EMC Corporation.
''Pursuant to the definitive merger agreement with EMC and consistent with the tender offer previously commenced by EMC, EMC will acquire all of the outstanding shares of Data Domain common stock for $33.50 per share in cash,'' the company said in a statement.
The acquisition is expected to be neutral to EMC's non-GAAP earnings per share in its fiscal year 2009 and accretive to its non-GAAP earnings per share in fiscal year 2010.
EMC's all-cash tender offer commenced on June 2 and is scheduled to expire at 12:00 midnight Eastern Daylight Time on July 17, 2009, subject to customary tender offer conditions being satisfied.
In the end, it was the financially stronger EMC that won the acquisition. EMC had far greater resources to acquire Data Domain as it has nearly three times the cash-at-hand or short term investments with $7.25 billion, compared to NetApp's $2.6 billion, of which, nearly 52 per cent is tied up internationally.