(WEB HOST INDUSTRY REVIEW) — After a month-long bidding war with NetApp, EMC (www.emc.com) is finally on its way to acquiring storage solutions provider Data Domain (www.datadomain.com).
The company entered a definitive merger agreement with Data Domain where the company will acquire all of Data Domain’s common stock for $33.50 per share in cash for a total of $2.1 billion.
On June 2, Data Domain’s board formally agreed to be acquired by NetApp for just under $2 billion in cash and stock.
A few days later, EMC later approached Data Domain’s shareholders with a comparable offer, trying to convince the company the deal was better because it would be paid entirely in cash.
Data Domain said it has terminated the merger agreement with NetApp, paying the company a $57 million termination fee under the terms of the deal.
The company also cancelled its meeting with stockholders scheduled for August 14 where stockholders were to consider the NetApp merger.
Two law firms filed class action suits against Data Domain on behalf of the company’s shareholders.
The lawsuits, filed separately, both alleged that Data Domain’s board did not adhere to its responsibility to shareholders by refusing to negotiate with EMC and for agreeing to sell Data Domain to NetApp without taking steps to maximize the price paid to Data Domain’s shareholders.
Qatalyst Partners is serving as the financial advisor for the transaction and Fenwick & West LLP is serving as legal counsel to Data Domain.
Data Domain provides deduplication storage systems, including enterprise backup and archive software products.
