12 March 2010
Friday
NetApp and Data Domain enter revised acquisition agreement
By Victor Ng | Jun 4, 2009
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NetApp and Data Domain have announced that they have entered into a revised acquisition agreement under which NetApp will acquire all of the outstanding shares of Data Domain common stock for US$30 per share in cash and stock in a transaction valued at approximately $1.9 billion, net of Data Domain's cash.
"We are excited about this great opportunity for NetApp and Data Domain," said Dan Warmenhoven, chairman and CEO of NetApp. "The synergies between our two companies will enable us to accelerate growth and market adoption more so than as separate entities. This partnership will create meaningful benefits for our global customers."
"We are pleased with the revised terms of NetApp's acquisition offer and feel it will provide great value to our shareholders and customers," said Frank Slootman, president and CEO of Data Domain.
Data Domain stockholders will have a right to receive a cash amount of US$16.45 plus shares of NetApp common stock equal to the exchange ratio for each Data Domain share.
The exchange ratio is equal to 0.7783 shares of NetApp common stock if the "closing average" (as defined in the merger agreement) is less than US$17.41, or 0.6370 shares of NetApp common stock if the "Closing Average" is greater than US$21.27.
The "closing average" means the average of the closing sales prices for NetApp common stock as reported on the NASDAQ Global Select Market for the 10 most recent consecutive trading days ending on the third trading day immediately prior to the closing of the first-step merger. Under certain conditions, NetApp may elect to reduce, or may be required to reduce, the stock consideration, and, in the event of such a reduction, NetApp will be required to increase the cash consideration.
The Board of Directors of Data Domain has unanimously approved the revised transaction agreement. The deal is anticipated to close in 60 to 110 days, subject to customary closing conditions including regulatory approval.
Read also:
- NetApp set to acquire Data Domain
- NetApp to buy Data Domain
- EMC guns for Data Domain
- The plot thickens: Who would Data Domain choose?
- And the winner is NetApp! (well, maybe...)
