Data Domain's board of directors has recommended that stockholders reject EMC's offer to buy out the company's shares, voting in favour of a merger with NetApp instead.
"We are very pleased with Data Domain's recommendation that stockholders continue to support NetApp's merger proposal over EMC's unsolicited offer," says Dan Warmenhoven, chairman and CEO of NetApp. "This announcement reaffirms our belief that the NetApp proposal provides attractive short- and long-term value to Data Domain stockholders with no significant antitrust concerns and a clearer and more timely path to close.
"We look forward to proceeding with our proposal, bringing the offer to a stockholder vote, and beginning to execute on the promise of this compelling combination.
"Importantly, we believe a combination of NetApp and Data Domain brings significant benefits to customers and employees," Warmenhoven adds. "In our merger, we believe customers will benefit from a lower risk of business disruption, continued competition, an enhanced products and services offering, and the ability of the NetApp sales and marketing organisation to bring Data Domain's products to more enterprises in the US and to more customers in Europe and Asia.
"Furthermore, we believe employees will benefit from cultural compatibility and the ability to accelerate productivity and innovation given the existence of complementary products and a larger base of resources."