EMC Corp. (NYSE:EMC) said it
acquired majority ownership of Data Domain Inc. (NASDAQ:DDUP). The deal, which provided New Enterprise Associates with a
major payday, comes at a time when companies are trying to slash costs to combat losses from operating in the economic downturn. EMC now controls about 82% of Data Domain shares outstanding.
Hopkinton, Mass.-based EMC beat out rival NetApp Inc. (NASDAQ:NTAP) with its raised $2.2 billion bid giving it a company that is valued because of its leading deduplication technology. That tech removes repeated data from storage systems allowing them to operate more efficiently. It also gives EMC a strong position in a data center market that is the center of
a lot of dealmaking.
When the deal is completed (expected by the end of July), EMC says Santa Clara, Calif.'s Data Domain will become the foundation of a new product division within EMC's storage business focused on next-generation disk-based backup, recovery and archive solutions.
The division will be led by Frank Slootman (pictured), Data Domain's president and CEO, who will report to EMC chairman president and CEO Joe Tucci, and to Frank Hauck, EMC's EVP leading its storage business.
EMC expects the new division will have double-digit revenue growth and earn $1 billion in 2010. -
Baz Hiralal
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