EMC Offers $1.8B to Buy Data Domain

Hardware

The Associated Press

06/02/09 - 12:42 AM EDT

HOPKINTON, Mass. -- Data storage company EMC(EMC Quote) is offering $1.8 billion, or $30 a share, for Data Domain(DDUP Quote), one-upping a rival bid for the backup system provider from rival NetApp(NTAP Quote).

EMC's all-cash offer represents a 20% premium over the $25 a share cash and stock bid made by NetApp on May 20.

EMC said a deal would help broaden its range of storage products and grow revenue and profits.

In a statement Monday, EMC CEO Executive Joe Tucci said, "Our substantially superior proposal is a win-win for both companies."

Shares of Data Domain rose more than 16% in after-hours trading to $30.62, having closed earlier up 3.5% at $26.35.

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