June 4, 2009 -- Another day, another development in the EMC-Data Domain-NetApp saga. Less than 12 hours after NetApp publicly raised its offer to buy Data Domain, the two companies have officially entered into a revised acquisition agreement.
The volleying has been worthy of a match at Roland Garros. NetApp responded to EMC's surprise bid for Data Domain yesterday morning by raising its offer. The price seems to have satisfied Data Domain, for now.
Late yesterday, the pair issued a joint press release stating that they have entered into a revised acquisition agreement under which NetApp will acquire all of the outstanding shares of Data Domain common stock for $30 per share in cash and stock in a transaction valued at approximately $1.9 billion, net of Data Domain's cash.
EMC is standing pat. The company issued a statement of its own on Wednesday, in which Joe Tucci, EMC chairman, president and CEO, said, "EMC's all-cash tender offer remains superior to NetApp's proposed part-stock merger transaction. We are proceeding with our superior cash tender offer, which is not subject to any financing or due diligence contingency. We do not believe that the Data Domain stockholders will approve the merger transaction with NetApp."
Tucci added, "EMC urges the Board of Directors of Data Domain to not take any actions that would further impede a transaction that is a superior alternative for Data Domain's shareholders."
Whether EMC counters the counter offer remains to be seen.
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