NetApp Buys Data Domain For $1.5bn

NetApp announced this week that it has agreed to buy data backup and disaster recovery systems provider Data Domain Inc. for USD $25 per share in cash and stock, or about USD $1.5 billion.

The data storage company said it will operate Data Domain as a product line.

The result should accelerated growth and market adoption, according to NetApp, since Data Domain has the distribution channels and global reach to offer its products to more customers.

Data Domain's board has unanimously approved the deal, which is expected to close in the next two to four months.

On Wednesday, NetApp reported a drop in fiscal fourth-quarter profit as revenue declined amid the economic turmoil.