NetApp Inc.(NASDAQ: NTAP) and Data Domain Inc.(NASDAQ:DDUP) merger has ended in break-up after NetApp did not revise its proposal in the wake of EMC Corp.’s higher unsolicited offer.
NetApp and EMC have been vying for Data Domain since May in which the two competes in selling big data-storage systems. NetApp initially offered to buy Data Domain for $1.5 billion, or $25 a share, in cash and stock which countered by EMC with an all-cash offer of $30 a share.
“NetApp applies a disciplined approach to acquisitions, one focused intently on creating long-term value for our stockholders. We therefore cannot justify engaging in an increasingly expensive and dilutive bidding war that would diminish the deal’s strategic and financial benefits,” said Dan Warmenhoven, NetApp’s chairman and CEO.
Data Domain's board tentatively accepted NetApp's proposal after NetApp counter-offered at $30 a share in cash and stock. NetApp received $57 million break-up fee from Data Domain as a result of the termination of the agreement.
Data Domain was then agreed to be acquired by EMC for $2.1 billion, or $33.50 a share.
“While NetApp’s acquisition of Data Domain would have produced benefits for customers and employees and complemented NetApp’s existing growth trajectory, we remain highly confident in our already compelling strategic plan, market opportunities, and competitive strengths,” Warmenhoven said.