EMC today revealed it has acquired more than 82% of Data Domain shares, which means any chance of another company swooping in with a better offer is gone. Under terms of the July 8 agreement between the vendors, EMC is paying $33.50 per share for Data Domain stock for a total of $2.1 billion.
EMC reiterated in a news release today that it expects to close the deal by the end of July. It also said Data Domain will be the centerpiece of a new product division for disk backup products, headed by Data Domain CEO Frank Slootman. Slootman will report to EMC CEO Joe Tucci and Frank Hauck, EVP of the storage business. EMC forecasts the division will have $1 billion in revenue in 2010.
Tucci first laid out plans to make Data Domain the key piece of its new product division June 1 when EMC made its first offer to buy Data Domain. Data Domain rejected that offer for a NetApp bid, but accepted EMC’s next offer.
EMC didn’t say which products will be included in the new division, but it’s likely to include Avamar host-based data deduplication software and whatever backup disk libraries EMC keeps after the deal closes. The biggest question centers around the EMC Disk Library (EDL) platform: will EMC continue to offer dedupe from Quantum on the EDL, replace the Quantum software with Data Domain software, or replace the entire EDL line with Data Domain devices?
In his June 1 comments, Tucci talked about making a family out of the Disk Library platform, so you can expect that brand to survive.