NetApp buys Data Domain for $1.5 billion

Storage vendor NetApp has agreed to acquire Data Domain, a maker of disk-based backup products, for about US$1.5 billion, the companies announced Wednesday. The deal has been approved by Data Domain's board of directors and is expected to close within 120 days following the customary approvals. Data Domain will become a product line within NetApp and the companies' sales organizations will be integrated. NetApp's global sales, support and partner network of NetApp will extend the reach of Data Domain's products, the companies said.

Data Domain specializes in backup systems with data de-duplication technology, which reduces the amount of storage space required for backups by eliminating redundant bits of data. Despite the current economic downturn, demand for storage capacity is growing rapidly. IDC estimates the total disk storage capacity shipped in 2008 was up more than 40 percent from a year earlier.