EMC Outbids NetApp For Data Domain With $1.8 Billion Cash Offer

Posted Jun 1, 2009

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]