This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

NetApp Nabs Data Domain for $1.5 Billion

Updated from 4:54 p.m. EDT

Storage giant NetApp (NTAP - Get Report) has thrown down $1.5 billion to acquire publicly traded backup specialist Data Domain (DDUP).

Under the terms of the deal, NetApp will acquire all of the outstanding shares of Data Domain's common stock for $25 per share in cash and stock.

"This combination is a great opportunity for both NetApp and Data Domain," said NetApp CEO Dan Warmenhoven in a statement. "NetApp has the distribution channels and international reach to offer Data Domain products to more customers, accelerating growth and market adoption."

Data Domain is seen as key developer of de-duplication(subscription required) technology, which ensure that identical pieces of data are not stored. The Santa Clara, Calif.-based company went public in 2007 and generated revenue of $79 million in its recent first quarter.

News of the deal pushed Data Domain's shares up $6.34, or 35.7%, to $24.30, in extended trading Wednesday. NetApp's stock, however, dipped 45 cents, or 2.66%, to $16.89.

NetApp, which competes with EMC (EMC - Get Report) and Hewlett-Packard (HPQ - Get Report), released its fourth-quarter results after the market closed.

The Sunnyvale, Calif.-based firm reported revenue of $880 million, down from $938 million in the same period last year, but above analysts' estimate of $856.48 million.

NetApp earned 23 cents a share on net income of $75 million, compared to 26 cents a share and $90 million in the year-ago quarter. Excluding charges, the company posted earnings of 31 cents a share on net income of $103 million, compared to 38 cents a share and $131 million in the year-ago quarter. Analysts had expected earnings of 23 cents a share.

NetApp did not give revenue guidance for the fourth quarter, but expects a non-GAAP gross margin of 61%.

The storage giant expects the Data Domain deal to close in the next 60 to 100 days, and says that it will be accretive on a non-GAAP basis within the subsequent 12 months.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
EMC $26.48 0.00%
HPQ $33.16 0.00%
NTAP $35.91 0.00%
AAPL $125.80 0.00%
FB $77.56 0.00%

Markets

DOW 17,928.20 -142.20 -0.79%
S&P 500 2,089.46 -25.03 -1.18%
NASDAQ 4,939.3270 -77.6020 -1.55%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs