… But the CEO of Data Domain Prefers NetApp…

NetApp and Data Domain, Inc. have entered into a revised acquisition agreement under which NetApp will acquire all of the outstanding shares of Data Domain common stock for $30 per share in cash and stock in a transaction valued at approximately $1.9B, 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.

Transaction Details
Data Domain stockholders will have a right to receive a cash amount of $16.45 plus shares of NetApp common stock equal to the exchange ratio for each Data Domain share. The exchange ratio is equal to (i) 0.7783 shares of NetApp common stock if the "Closing Average" (as defined in the Merger Agreement) is less than $17.41, (ii) 0.6370 shares of NetApp common stock if the Closing Average is greater than $21.27, and (iii) that fraction of a share of NetApp common stock equal to the quotient obtained by dividing $13.55 by the Closing Average, if the Closing Average is (A) less than or equal to $21.27 and (B) greater than or equal to $17.41. 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 60-110 days subject to customary closing conditions including regulatory approval.

NetApp first announced its definitive agreement to acquire Data Domain on May 20, 2009.