DDUP Takes $33.50/Shr EMC Bid; NetApp Gives Up

Data Domain (DDUP) this afternoon said it has reached a definitive agreement to be acquired  by EMC (EMC) for $33.50 a share in cash.  The company also said it has terminated its previous agreement to be acquired by NetApp (NTAP), and has paid the company a $57 million termination fee.

In a statement, NetApp CEO Dan Warmenhoven explained why they decided not to ratchet up their bid.

“While NetApp’s acquisition of Data Domain would have produced benefits for customers and employees and complemented NetApp’s existing growth trajectory, we remain highly confident in our already compelling strategic plan, market opportunities, and competitive strengths…NetApp applies a disciplined approach to acquisitions, one focused intently on creating long-term value for our stockholders. We therefore cannot justify engaging in an increasingly expensive and dilutive bidding war that would diminish the deal’s strategic and financial benefits.”

Investors had been hoping for a higher bid - but that now seems unlikely.

Ergo, in late trading, DDUP is down 50 cents, or 1.5%, to $33.40.