In addition to 7 million shares of Data Domain's common stock, documents filed with the SEC reveal that a "selling stockholder" also offered an additional 390,000 shares yesterday. Tucked away within a recent amendment to Data Domain's S-1, Quantum is revealed as the recipient of this windfall.
A spokesman for Quantum confirmed today that, at $15 apiece, Data Domain shares had netted his firm a cool $5,850,000 -- not bad considering the two firms are head-to-head in one of the hottest parts of the storage market. (See Insider: De-Dupe Demystified, Top Storage Predictions for 2007, and 2006 Storage Winners & Losers .)
The roots of this strange situation can be traced back to March, when Data Domain inked a cross-licensing deal with Quantum to avoid future lawsuits. This followed an inquiry from Quantum late last year.
Specific details of the agreement have not been revealed, but as part of their deal, Quantum received 390,000 shares from Data Domain. Those shares have now turned into a sizable chunk of money.