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This is insane.
On the heels of EMC’s Configuresoft acquisition, comes news of another deal: EMC wants Data Domain. And the best part? If the Data Domain acquisition goes through, EMC would steal it right out of the hands of NetApp.
Ouch.
The news hit the wire yesterday. EMC reported that it had proposed to acquire all of the outstanding common stock of Data Domain for $30 per share in cash. The transaction total is valued at approximately $1.8 billion. EMC’s all-cash offer represents a 20% premium to the cash and stock offer made by NetApp for Data Domain on May 20, 2009. EMC’s proposal is not subject to a financing or due diligence contingency, and the company will use existing cash balances to finance the transaction.
NetApp doesn’t have a prayer.
It’s said that EMC wants to get its hands on Data Domain for its growing revenue base, skilled management and sales force, and its storage software technology - all of which will speed up the delivery of next-generation disk-based backup and archiving solutions for customers.
You can bet that EMC’s storage portfolio will get even bigger with this deal. But come on? Does EMC really need it?
According to Chuck Hollis, EMC insider and blogger, the answer is yes.
In reference to dedupe technology, Hollis writes:
Like “security” or “virtualization” or “encryption” or “management” – it’s just one of those concepts that –sooner or later – is going to show up just about everywhere in the infrastructure stack with dozens and dozens of interesting use cases. So, given that, it follows that having more different flavors of dedupe technology in your arsenal is agood thing – hence EMC’s interest in Data Domain as well as many other forms of compression, single instancing and data deduplication.
Hollis does have a point, and he should know.
It’s obvious EMC is trying build an even wider lead in the storage market - and it will probably succeed. After all, the company always comes up smelling like a rose.
But, seriously, business aside - don’t you just love the theater? There’s always something entertaining going on at EMC - and we eat up every second of it.
| Around the ’sphere:
EMC Tops NetApp’s Bid for Data Domain - DealBook Blog - NYTimes.com - EMC, the world’s biggest maker of storage computers, said Monday afternoon that it was offering $30 a share in cash, or about $1.8 billion to acquire Data Domain, a data backup company. The EMC bid represents a 20 percent premium over a … emc data domain | EMC leads Buy NetApp Data Domain | FreshSides.com - emc data domain - Calling the war broke out data on the field - and the shareholders should be pleased. EMC, the world’s largest manufacturer of storage. EMC spars with NetApp over Data Domain | Between the Lines | ZDNet.com - Larry Dignan, Sam Diaz and other IT industry experts, blogging at the intersection of business and technology, deliver daily news and analysis on vital enterprise trends. Has EMC rustled Data Domain away from NetApp, HP and Cisco … - Well, EMC offered this week $300 million more than NetApp to acquire deduplication storage solutions vendor Data Domain. Additionally, EMC’s all cash deal has no finance or due diligence contingencies because it is using existing cash … |
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