When completed, the acquisition will be the foundation of a new product division at EMC.
EMC Corp. has announced that it has acquired majority ownership of Data Domain, Inc. (NASDAQ: DDUP). Once EMC completes the acquisition of Data Domain, which is expected by the end of July, Data Domain will become the foundation of a new product division within EMC's storage business focused on the development and delivery of next-generation disk-based backup, recovery and archive solutions.
The new EMC product division will be led by Frank Slootman, Data Domain's president and CEO, reporting to Joe Tucci, EMC's chairman, president and CEO, and Frank Hauck, EMC executive vice president leading EMC's storage business. EMC will increase its investment in the division, adding resources, technologies, and products. The company expects this new division to continue growing revenue at significant double-digit rates achieving $1 billion in revenue in 2010. EMC and Data Domain's highly complementary technologies will continue to deliver customers tremendous savings and value while promising entirely new and exciting prospects for integrated solutions in the future.
"I am delighted to welcome Data Domain and its dedicated, talented and seasoned team to the EMC family," said Tucci. "Together, we will shape the future of next-generation disk-based backup, recovery, and archive solutions, making life significantly better for our joint customers, changing the game in the storage software market, and creating new market opportunities for growth."
Added Slootman: "We are pleased to see the merger with EMC becoming a reality. We envision great opportunity to accelerate our business through EMC's massive worldwide distribution network and customer base, and we can't wait to begin seeing that play out in the market place."
Data Domain stockholders have tendered approximately 78.2 percent of the outstanding Data Domain shares (not including shares tendered by notice of guaranteed delivery). Together with the 3.9 percent of outstanding Data Domain shares previously held by EMC, EMC now controls approximately 82.1 percent of Data Domain shares outstanding.
The initial offering period of EMC's tender offer to purchase all of the outstanding shares of Data Domain common stock expired on July 17. EMC has accepted for payment the approximately 50,947,657 shares tendered in the offer.
EMC also announced a subsequent offering period from July 20 through midnight EDT, on Wednesday, July 22, unless further extended. The subsequent offering period will permit all stockholders who did not tender shares in the initial offering period to obtain the $33.50 per share offer price for their shares prior to consummation of the second-step merger. EMC expects to complete the second-step merger and close the acquisition shortly after expiration of the subsequent offering period so long as EMC controls 90 percent or more of the outstanding Data Domain shares at such time.
During the subsequent offering period, EMC's acquisition subsidiary Envoy Merger Corp. will accept for payment and promptly pay for Data Domain shares as they are tendered. Stockholders who tender shares during this period will be paid the same $33.50 per share cash consideration paid during the initial offering period. During the subsequent offering period, shares may not be tendered through procedures for guaranteed delivery and shares tendered may not be withdrawn. Envoy Merger Corp. may extend the subsequent offering period. If the subsequent offering period is extended, Envoy Merger Corp. will notify the depositary for the offer and issue a press release prior to 9:00 a.m. EDT on Thursday, July 23.
About EMC Corp.
EMC Corp. (NYSE: EMC) is the world's leading developer and provider of information infrastructure technology and solutions that enable organizations of all sizes to transform the way they compete and create value from their information. Information about EMC's products and services can be found at www.EMC.com.