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NetApp raises bid for Data Domain

Paul Kunert

NetApp has raised its bid price for Data Domain by more than 26% to $1.9bn and warned a deal with rival suitor EMC would disrupt the portfolio.

Yesterday, EMC tabled a £1.8bn counter offer for the deduplication specialist, following the $1.5bn proposed acquisition by NetApp last month, and said its submission was not subject to financing or due diligence contingency.

However senior management at NetApp appear to have an appetite to enter a bidding war by offering $30 per share in a cash and stock transaction.

"The complimentary nature of the Data Domain and NetApp product lines will result in higher aggregate growth compared to the redundancies that would result with the EMC product line," said Dan Warmenhoven, NetApp CEO.

In short, EMC's Clariion disk library, its acquisition of Avamar and OEM partnership with Quantum means it already has products that compete with Data Domain.

Warmenhoven said "we are committed to this partnership now as we were when we first announced our intent to acquire Data Domain."

Sources in the channel said Data Domain was a pioneer of deduplication and as such has more mature and broader portfolio but the feeling was that whichever vendor loses the bidding war will face embarrassment.

"Both EMC and NetApp are admitting a huge weakness, and that their deduplication technologies are not the market leaders," said one storage specialist.

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