The Wall Street Journal has a story today about a Silicon Valley company, Data Domain, that is being courted by two suitors in merger talks.  One is NetApp Inc. from a few miles away and the other is EMC Corp., a giant in the industry headquartered on the East Coast.  There is some interesting information here about the role that organizational culture plays in these kinds of combinations and I find it particular interesting that this is being explored up front.  Too often in mergers the partners find out too late that culture-clash has derailed plans that once looked great on paper.

Some merger experts and West Coast technology workers say there may be another motive in the mix: Silicon Valley companies don’t like being taken over by out-of-towners, especially East Coasters like EMC. Twice in its discussions with EMC, Data Domain says in Securities and Exchange Commission filings, its executives discussed “the cultural fit” between the two companies. They rejected EMC meeting proposals.

Battle for Data Domain Opens Culture Clash — Silicon Valley’s NetApp Is Local Favorite Over Buttoned-Down, East Coast EMC in Bid War. William M. Bulkeley, Ben Worthen. Wall Street Journal. (Eastern edition). New York, N.Y.: Jun 15, 2009. pg. B.1

Data Domain to EMC: What part of ‘no’ do you not get?. DD scours EMC proposals for reasons not to sign. By Chris Mellor

Data Domain tells shareholders not to take EMC offer. Termination fee cited as one factor why Data Domain’s sticking with NetApp. By Dan Gallagher, MarketWatch