Deal to expand NetApp’s reach in backup
NetApp, a provider of storage and data management systems, has bought Data Domain, a provider of deduplication storage systems, for $25 per share.
The cash and stock transaction is valued at approximately $1.5 billion, net of Data Domain’s cash.
NetApp intends to operate Data Domain as a product line within its product operations organisation. The Data Domain sales organisation will be integrated with NetApp sales to access new accounts.
The transaction is expected to complete in the third quarter of 2009 subject to customary closing conditions including regulatory approval.
Dan Warmenhoven, chairman and CEO of NetApp, said: The combination of our two companies will increase NetApp’s reputation for delivering both outstanding efficiency and operational breakthroughs to customers worldwide. We will focus on new customer acquisition and maximum market share expansion. Their existing customers should see the benefits of NetApp’s broader scale and support capabilities.
Frank Slootman, president and CEO of Data Domain, said: Notwithstanding the rapid record sales growth Data Domain has experienced over the past five years, with NetApp’s distribution channel and customer base, we have an opportunity to accelerate even further.