EMC has won the battle for Data Domain after offering $2.1 billion for the de-duplication software vendor.
The all-cash, $33.50 per share offer upped the ante on previous suitor NetApp\'s $1.8 billion cash-and-stock bid.
NetApp had started the bidding with a $1.5 billion cash-and-stock offer, and Data Domain countered with a $1.8 billion all-cash bid.
NetApp raised its bid to $1.8 billion in cash and stock, which Data Domain accepted. It has now terminated this arrangement.
NetApp, which was paid a $57 million break-up fee as a result of the termination, said it would not submit a counter bid.
"NetApp applies a disciplined approach to acquisitions," CEO Dan Warmenhoven said. "We therefore cannot justify engaging in an increasingly expensive and dilutive bidding war that would diminish the deal\'s strategic and financial benefits."
EMC said the acquisition was expected to be neutral to earnings for this year and would begin turning a profit for the company in 2010.
"This is a compelling acquisition from both a strategic and financial standpoint," CEO Joe Tucci said.
The arrangement still requires shareholder approval. EMC shares on the NYSE rose 0.24% in after hours trading to $12.55, while on the Nasdaq, Data Domain shares fell 1.36% to $33.44 and NetApp shares grew 4.35% to $19.19.