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EMC outbids NetApp for Data Domain

Tim Stammers | June 4, 2009
Data Domain is worth fighting over, but the price is very high

EMC apparently did not know that Data Domain was open to offers. In an open letter that it sent to Data Domain this week, it chided Data Domain for not calling EMC before agreeing to be bought by NetApp. As soon as EMC heard of the deal, it moved quickly. Only two weeks have passed, but EMC has promised Data Domain that it has completed its due diligence and that its offer is cash on the nail, all questions already answered. EMC has a reputation as a decisive company that commits itself strongly to its plans. It has had to change its plan, and could now end up with at least two dogs in the fight Quantums and Data Domains. But it is acting firmly.

Data Domain was obviously very happy at the prospect of becoming a NetApp company; otherwise it would have approached EMC for an alternative offer. But EMC is bigger. Also, unlike NetApp, EMC has a strong history of successful acquisitions that were good for the companies that it bought. VMware is only one jewel in EMCs crown.

At the time of writing, Data Domain had still made no public move. It may well be waiting for NetApp to respond. NetApp has already put a lot of money on the table. Now it has to decide whether to lay out even more.

Timothy Stammers is senior analyst at Ovum.


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