Big, big data storage news happening: EMC has jumped into the ring to grab Data Domain to beat NetApp.
News outlets are putting the all-cash offer by the storage titan between $1.8 billion and $2 billion.
The move is making both EMC and Data Domain investors happy -- both stocks jumped by end of day trading Monday.
According to EMC's press statement the offer represents a 20 percent premium to the cash and stock offer made by NetApp for Data Domain just two weeks ago when NetApp announced its intentions for the leading deduplication player and offered up $1.5 billion.
At that time some news reports had the deal as sealed. But nothing is sealed until it's sealed, and it shouldn't come as a huge surprise to anyone covering the storage industry that EMC was watching NetApp's move like a hawk.
CEO Joe Tucci is, without any doubt, one of the smartest acquisition business leaders and he doesn't like to lose. Yet one report actually quoted storage analysts as saying no other company could top NetApp's offer.
Hello? How could anyone ever discount EMC from making a move like this?
This is the company that bought up VMWare, and when its CEO wouldn't play nice and do things the ‘Tucci' way, it promptly escorted that leader out the door.
It's the company that made a huge swoop into the small business storage arena last year in outbidding ExcelStor and paying $213 million for brand-name Iomega. And that deal was actually signed when EMC crashed the party.
In fact EMC made 8 successful acquisitions last year.
So no one should be surprised by this move, and while the blogsphere will reverberate today, it's going to happen as there is no legitimate reason for Data Domain to turn down such a lucrative offer.