EMC wins bidding battle for Data Domain
The battle between the bidders is over as EMC acquires Data Domain for $2.1 billion.
In a statement on Data Domain's website, a spokesperson said: "Data Domain's board of directors has unanimously determined that the definitive merger agreement with EMC and the terms of the EMC tender offer are advisable, fair to and in the best interests of Data Domain and its stockholders."
However, the sought-after tech company has had to make a pay out of $57 million to NetApp for ending their agreement, which would have seen the company going for $1.9 billion in a mixture of stocks and cash.
Joe Tucci, president of EMC, said in a statement that the acquisition was "compelling... from both a strategic and financial standpoint."
NetApp made an initial deal with Data Domain back in May to buy the company for $1.5 billion in a mixture of stocks and cash but EMC came in with a full cash offer at the start of June.
Since then, the two companies have fought it out, and although the deal had initially been struck with NetApp, Data Domain went for EMC's larger cash offer.
Dan Warmenhoven, chairman and chief executive of NetApp, said in a statement: "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."
The deal between EMC and Data Domain is expected to be completed before the end of July.
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