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EMC/NetApp recap on Data Domain

NetApp, EMC battle it out for Data Domain
Storage Alert By Deni Connor , Network World , 06/10/2009
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Storage analyst Deni Connor focuses on storage, application and infrastructure management in this twice-weekly newsletter.

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Unless the EMC-NetApp-Data Domain changes in the past five days, here's what happened in NetApp's efforts to acquire the deduplication vendor.

The pot got sweeter last week as NetApp upped the ante for the acquisition of Data Domain for $1.9 billion in cash and stock. The deal, which Data Domain, accepted trumped EMC's $1.8 billion all cash offer. EMC's original $1.8 billion cash deal remains under consideration at Data Domain.

Apparently last November, Goldman Sachs brokered a meeting between CEO Frank Slootman and NetApp CEO Dan Warmenhoven about a business combination. The two CEOs met again in March – the result being that Data Domain's board would accept an offer from NetApp.

In mid-May, NetApp made a cash and stock offer of $1.5 billion to which Data Domain agreed.

EMC countered the NetApp offer with a $1.8 billion all cash deal. This was apparently after also Data Domain considered a deal with another unidentified party.

NetApp came back to the table with a $1.9 billion cash/stock offer, which Data Domain accepted. Yet there was a wrinkle in the works – Data Domain, despite accepting NetApp's offer, maintained the right to review EMC's offer. At this point (if nothing has changed in the past five days) that's where negotiations stand. Data Domain is in the catbird seat – having two suitors vying for its attention.

Deni Connor is principal analyst for Storage Strategies NOW and host of both the Masters of Storage and Masters of Servers Solution Centers.

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Partner Content

Gartner 2009 Magic Quadrant for Job Scheduling

Gartner has positioned BMC CONTROL-M in the Leaders Quadrant of their "2009 Magic Quadrant for Job Scheduling." The report assesses the ability to execute and completeness of vision of key vendors in the marketplace. Read a full copy today, courtesy of BMC Software.

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