Lucas Mearian
Senior Reporter

Data Domain asks shareholders to wait on EMC buyout offer

news
Jun 5, 20092 mins

NetApp's cash-and-stock buyout offer is a higher dollar figure, but analysts say EMC's all-cash offer is a better choice for Data Domain

Data Domain’s board of directors on Thursday asked shareholders to wait before deciding on EMC’s bid to buy the company for $1.8 billion, even though NetApp Inc. topped that offer on Thursday.

EMC’s unsolicited all-cash offer is viewed by some industry observers as superior to NetApp’s cash and stock offer, but Data Domain’s executives already signed an agreement to accept the NetApp deal. However, the board also agreed to NetApp’s initial offer of $1.5 billion on May 20.

[ Analysis: EMC doesn’t need Data Domain, but the deal would damage chief rival NetApp. ]

“At this time, the Board is not making a recommendation with respect to the EMC offer,” the board said in a statement. “At this time, the Board is reaffirming the recommendation in favor of Data Domain’s merger with NetApp.”

According to Steve Duplessie, founder and senior analyst at the Enterprise Strategy Group in Milford, Mass., Data Domain’s board had to accept NetApp’s offer, but it is also free to recommend EMC’s current offer or a follow-up bid.

“The way the restrictions work, is when there’s a tender negotiation on acquisition, no one else is allowed to interfere with that. And so, they have to sign and accept that offer to have the opportunity now to have others come in and play,” Duplessie said.

Lucas Mearian

With a career spanning more than two decades in journalism and technology research, Lucas Mearian is a seasoned writer, editor, and former IDC analyst with deep expertise in enterprise IT, infrastructure systems, and emerging technologies. Currently a senior writer at Computerworld covering AI, the future of work, healthcare IT and financial services IT, his 23-year tenure has included roles such as Senior Technology Editor and Data Storage Channel Editor, where he covered cutting-edge topics like blockchain, 3D printing, sustainable IT, and autonomous vehicles. He has appeared on several podcasts, including Foundry’s Today In Tech. He also served as a research manager at IDC, where he focused on software-defined infrastructure, compute, and storage within the Infrastructure Systems, Platforms, and Technologies group.

Before entering tech media, he served as Editor-in-Chief of the Waltham Daily News Tribune and as a senior reporter for the MetroWest Daily News. He’s won first place awards from the New England Press Association, the American Association of Business Publication Editors, and has been a finalist for several Jesse H. Neal Awards for outstanding business journalism. A former U.S. Marine Corps sergeant who served in reconnaissance, he brings a disciplined, analytical mindset to his work, along with outstanding writing, research, and public speaking skills.

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