EMC Outbids NetApp For Data Domain With $1.8 Billion Cash Offer
EMC Corporation is one of the biggest server storage companies in the world with a market cap of about $25 billion. Data Domain offers similar services but at a much smaller scale. Last week NetApp made a bid to buy out Data Domain for $1.5 billion in cash and stock. EMC one upped NetApp by offering $1.8 billion in cash today.
Data Domain’s stock is trading at about $26.35, giving the company a market cap of $1.61 billion. EMC made a bid for Data Domain after the stock market closed. After the bid announcement, Data Domain’s stock price surged to above $30 during after hours trading.
“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,” stated EMC CEO, Joe Tucci. “Our substantially superior proposal is a win-win for both companies.”
NetApp is a smaller company than EMC. NetApp’s market cap is about $6.84 billion.
[via DealBook]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry