Data Domain Inc.  (DDUP) Trade Now »     Rate DDUP  -  Discuss DDUP  -  Add to Watch List        

NetApp (NTAP) this afternoon said it has reached a revised agreement to acquire Data Domain (DDUP) for $30 a share in cash and stock, in a deal it says is worth $1.9 billion. The deal will be for $16.45 a share in cash plus stock.

The number of shares issued will be 0.7783 per share if NTAP shares over the last 10 days before closing average less than $17.41; 0.6370 shares is the stock is above $21.27; or the fraction of a share equal to $13.55 divided by the closing average if it is between those boundaries.

In a slightly puzzling move, NetApp (NTAP) this morning upped its bid for Data Domain (DDUP) to $30 a share in cash and stock, matching - but not topping - the $30 a share cash bid yesterday from EMC (EMC). NetApp had originally offered $25 a share in cash and stock.

So, uh, why would holders prefer $30 in cash and stock to EMC’s bid of $30 in pure greenbacks?

EMC (EMC) threw a monkey-wrench in the data storage industry yesterday with its surprise $30-a-share cash bid for Data Domain (DDUP), which last month had agreed to be acquired by NetApp (NTAP) for $25 a share in casth and stock. The market today is reassessing the valuation of all of the players involved in the deal - as well as rivals of Data Domain in the data deduplication business. (The general idea of data dedeuplication, by the way, is to provide more efficient back-up data storage which avoids the archiving of multiple copies of the same piece of data.)

Filed under: Deals, AT and T (T), EMC Corp (EMC), Technology

A race has broken out for Data Domain Inc (NASDAQ: DDUP). NetApp Inc. (NASDAQ: NTAP) offered $1.5 billion for the company two weeks ago, and EMC Corp. (NYSE: EMC) decided it had to get in on the action, upping the ante to $1.8 billion yesterday. Data Domain shares gained 16% on the news in late trading yesterday, resulting in EMC's bid carrying a 17% premium.

Bidding war!

EMC (EMC) this afternoon said it is offering to buy Data Domain (DDUP) for $30 a share in cash, ot about $1.8 billion net of DDUP’s cash position. That tops the $25 a share cahs-and-stock deal Data Domain had reached to be acquired by NetApp (NTAP).

EMC contends it is making the better offer - not just a higher offer - with an all-cash bid and no financing or due diligence requirement. EMC said it will promptly launch a tender offer for all of DDUP’s shares.