NetApp raises bid in fight for Data Domain

Storage vendor hits back at EMC's counter offer for data de-duplication firm by increasing bid to $1.9bn

NetApp does not intend to let Data Domain go without a fight, as it has upped its offer for the data de-duplication vendor to $1.9bn (£1.2bn).

Outbidding EMC, which yesterday made a surprise $1.8bn all-cash offer for the firm, NetApp’s new bid has been raised from its $1.5bn opening offer.

In a revised letter of offer to Data Domain’s chairman of the board of directors, NetApp proposed a revised transaction between the vendors which would offer Data Domain’s stockholders "a superior combination of risk-adjusted value and transaction certainty than EMC’s unsolicited acquisition proposal".

The letter continued: “Unlike a combination of Data Domain and EMC, which has substantial product overlap and which we believe will face significant regulatory challenges, a combination of Data Domain and NetApp has no meaningful regulatory risk.”

Dan Warmenhoven, chairman and chief executive of NetApp, said: “Our strategic rationale remains the same and we firmly believe that the combination of our two companies will provide a greater opportunity and risk-adjusted value for Data Domain shareholders, customers, and partners.

“The complementary nature of the Data Domain and NetApp product lines will result in higher aggregate growth compared to the redundancies that would result with the EMC product line.”

Warmenhoven said NetApp is as committed to the partnership now as it was when it first announced its intent to acquire Data Domain.