by Lyle Smith

Seagate to Acquire Dot Hill Systems

Seagate and Dot Hill Systems have announced a definitive agreement that indicates a wholly-owned indirect subsidiary of Seagate will commence a tender offer for all of the outstanding shares of Dot Hill. This will be an all-cash transaction at $9.75 per share, which totals to roughly $694 million on a fully-diluted equity value basis. Dot Hill indicates that it has approximately $49 million in cash on its balance dated on June 30, 2015.

Both companies have indicated that the transaction has been unanimously approved by Dot Hill’s Board of Directors. In addition, the consummation of the tender offer is subject to customary closing conditions. Once it has been completed, Seagate will acquire the remaining shares not tendered in the tender offer through a second-step merger.

Dot Hill’s external storage array-based systems (such as the AssuredSAN 4824) and software products will add a significant amount of flexibility to Seagate’s future releases and will be offered as part of Seagate’s Cloud Systems and Electronics Solutions business. Seagate specifies that Dot Hill’s storage technology IP portfolio and software capabilities will help them further innovate and add value to their OEM customer base.

The transaction slated to close sometime during the fourth calendar quarter of 2015.

Seagate

Dot Hill

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