NetApp digs deep to acquire Data Domain

NetApp will buy all of the outstanding shares of Data Domain common stock for $25 per share in cash and stock

Storage giant NetApp has entered into an agreement to acquire deduplication vendor Data Domain for $1.5bn (£950m).

NetApp will buy all of the outstanding shares of Data Domain common stock for $25 per share in cash and stock.

NetApp will operate Data Domain as a product line within NetApp’s product operations organisation. Data Domain’s sales organisation will be integrated with NetApp sales.

Dan Warmenhoven, chairman and chief executive of NetApp, said: “This combination is a great opportunity for both NetApp and Data Domain. NetApp has the distribution channels and international reach to offer Data Domain products to more customers, accelerating growth and market adoption.

“Our objective will be to amplify Data Domain’s success, grow Data Domain’s revenues as quickly as today’s economy will allow, and create systems and incentives within NetApp to nurture Data Domain to its fullest potential.”

Warmenhoven said NetApp will focus on new customer acquisition and maximum market share expansion.

Both vendors said their channel partners will benefit from the inclusion of the Data Domain product line into the NetApp Partner Programme.

Frank Slootman, president and chief executive of Data Domain, said: “Notwithstanding the rapid record sales growth Data Domain has experienced over the past five years, with NetApp’s distribution channel and customer base we have an opportunity to accelerate even further.”