NetApp (Nasdaq: NTAP), one of the world’s leaders in storage technology,scored a victory in the latest round of its fight to acquire Data Domian.
(Nasdaq: DDUP) favors the $1.9 billion buyout bid from (Nasdaq: NTAP) rather than one from EMC (NYSE: EMC), its board of directors declared Monday.
has offered $1.8 billion for Data Domain in a battle for storage maker technology. NetApp countered with a $30 per-share, $1.9 billion offer, which is $5 a share higher than first offered last month.
The ownership battle has already driven Data Domain shares well above $30. They closed at $32.87 Monday, down 63 cents.
All three companies have major operations in RTP.
Reuters reported that Data Domain’s board had been due to disagreements over “standstill or confidentiality” agreements. Data Domain also would have to pay NetApp a $57 million breakup fee if the merger agreement between the two firms fell through.
Meanwhile, The Wall Street Journal reports that the Data Domain deal highlights how from a company not only going public successfully but then later being acquired. New Enterprise Associates and Greylock partners are making a return of well over 20 times their original investment in Data Domain, which raised some $40 million in venture capital.
NetApp is based in California and maintains a customer support as well as research and development and other functions at a campus in RTP.