Infrastructure // Storage
News
6/1/2009
08:12 PM
Connect Directly
RSS
E-Mail
50%
50%
Repost This

EMC Launches $1.8 Billion Bidding War For Data Domain

The proposal amounts to a 20% premium over NetApp's deal and would strengthen EMC's position in the disk-based backup and archive market.

EMC on Monday started a bidding war for Data Domain, offering to pay $300 million more for the data-storage company than rival NetApp.

EMC offered to pay $30 a share in cash for Data Domain, making the deal worth $1.8 billion. NetApp last month agreed to buy the company for $1.5 billion in cash and stock.

EMC's proposal amounts to a 20% premium over NetApp's deal, according to EMC. The acquisition would strengthen EMC's position in the disk-based backup and archive market and would result in a business larger than $1 billion for EMC next year, the storage company said.

"Strategically, this combination will further enhance our ability to broaden EMC's best-in-class storage portfolio for the benefit of EMC and Data Domain customers and this, in turn, will accelerate EMC's top- and bottom-line growth rates," Joe Tucci, chairman, president and CEO of EMC, said in a statement.

In a letter to Frank Slootman, president and chief executive of Data Domain, Tucci said he would maintain the company's senior management team and would operate Data Domain as a product division of EMC.

Data Domain's board had approved the May 20 NetApp offer before EMC's bid. Data Domain has not issued a response to the latest development.

Data Domain, EMC, and NetApp offer disk-based backup systems, which augment tape backup used for long-term storage of data, often to comply with government regulations and legal requirements. Data Domain, however, also specializes in deduplication technology that reduces the storage of redundant data.

The battle for Data Domain reflects the ongoing consolidation among makers of data center technology. In addition, there's a growing trend in storage in which network-attached storage vendors are teaming up with deduplication companies in order to make a stronger offering.

In this case, NetApp and EMC would strengthen their deduplication capabilities by buying a competitor. But examples of partnerships include NAS suppliers like BlueArc, Isilon, and Hewlett-Packard partnering with Ocarina Networks and others.


InformationWeek Analytics is seeking insight into enterprise use of technologies like data deduplication and tiered storage. Take part in our survey by June 5 and let us know. Upon completion, you'll be eligible to enter a drawing to receive one Apple 16-GB iPod Touch valued at $299.

Comment  | 
Print  | 
More Insights
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Elite 100 - 2014
Our InformationWeek Elite 100 issue -- our 26th ranking of technology innovators -- shines a spotlight on businesses that are succeeding because of their digital strategies. We take a close at look at the top five companies in this year's ranking and the eight winners of our Business Innovation awards, and offer 20 great ideas that you can use in your company. We also provide a ranked list of our Elite 100 innovators.
Video
Slideshows
Twitter Feed
Audio Interviews
Archived Audio Interviews
GE is a leader in combining connected devices and advanced analytics in pursuit of practical goals like less downtime, lower operating costs, and higher throughput. At GIO Power & Water, CIO Jim Fowler is part of the team exploring how to apply these techniques to some of the world's essential infrastructure, from power plants to water treatment systems. Join us, and bring your questions, as we talk about what's ahead.