NetApp Inc. (NTAP) raised its offer for Data Domain Inc. (DDUP) to $30 a share, matching the bid from rival EMC Corp. (EMC), as the two data-storage makers spar over one of the fastest growing companies in the sector.

The revised offer, which remains a combination of cash and stock, comes after EMC this week topped NetApp's earlier $25-a-share offer for Data Domain with a bid of nearly $2 billion, all in cash. Last month, Data Domain agreed to accept NetApp's $25-a-share offer.

Data Domain shares were recently up 2.9% premarket at $32.50 as investors position themselves for a potential final agreement above the current $30 bids. Analysts say both NetApp and EMC are likely willing to go higher.

Jefferies analyst Bill Choi estimated that NetApp could push the price as high as $35 a share, though EMC could go further to acquire the company.

NetApp Chairman and Chief Executive Dan Warmenhoven said Wednesday, "Our strategic rationale remains the same and we firmly believe that the combination of our two companies will provide a greater opportunity and risk-adjusted value for Data Domain shareholders, customers and partners."

EMC was not immediately available for comment. Data Domain declined to speak on the matter.

While such takeover fights have been scarce in the technology sector, Oracle Corp. (ORCL) recently outbid International Business Machines Corp. (IBM) in its effort to win Sun Microsystems Inc. (JAVA). Analysts have said depressed prices for small companies and cash hoards at big companies may lead to more competitive deals in the sector.

Data Domain specializes in technology for "deduplication," or avoiding repeated storage of the same data. The technology can reduce demand for storage devices, and it is a selling point at a time when corporate computer chiefs are trying to cut hardware costs and save floor space and electricity use in computer rooms.

The company has churned out strong growth amid the recession, more than doubling revenues to $274 million in 2008 from the prior year. Currently, analysts expect on average 2009 revenues of $367 million according to Thomson Reuters.

Data Domain remains a relatively new player in the data-storage sector and lacks the distribution networks and massive sales squads of its larger competitors. By teaming with EMC or NetApp, the company would gain access to a much wider array of customers and markets, offering a chance at even faster growth.

"In the hands of someone else, it's certainly worth a lot more," Jefferies' Choi said.

EMC shares were recently down 3.4% to $12.42 premarket; NetApp gained 0.3% to $19.40.

-By Jerry A. DiColo, Dow Jones Newswires; 201-938-5670; jerry.dicolo@dowjones.com

(Tess Stynes contributed to this report.)