EMC has increased its offer for Data Domain to $2.1 billion, raising the stakes in its battle with NetApp to acquire the storage de-duplication technology developer.
Monday morning EMC said it was raising its all-cash offer for Data Domain to $33.50 per share, or approximately $2.1 billion, up from its previous offer of $30 per share, or $1.8 billion. EMC's latest offer trumps NetApp's current cash-and-stock bid of $1.9 billion.
EMC and NetApp have been involved in a bidding war for Data Domain since NetApp announced a deal May 20 to acquire the company for $1.5 billion. EMC countered June 1 with its $1.8 billion offer, which NetApp quickly raised to $1.9 billion.
EMC outlined its latest offer in a letter from Joe Tucci, EMC president and CEO, to Aneel Bhusri, chairman of Data Domain's board of directors. "The combination of EMC and Data Domain is strategically beneficial to both organizations and, when consummated, will deliver substantial and superior benefits to Data Domain stockholders, as well as our respective customers, employees and partners," Tucci said in the letter.
EMC said that it had removed from its offer all deal protection provisions, including any break-up fee obligations, which could hinder stockholder value, and challenged NetApp to do the same.
EMC also said the Federal Trade Commission had granted EMC "early termination" of the waiting period under antitrust laws, meaning an EMC acquisition of Data Domain could be quickly closed. EMC said it could close the deal in as little as two weeks.