Seagate Technology is all set to acquire data storage software and hardware appliances vendor Dot Hills by this year end. The former will put a tender offer for all of the outstanding shares of DOT Hill in an all-cash transaction valued at $9.755 per share, or a total of $694 million on a fully diluted equity value basis.
DOT Hill has approximately $49 million in cash on its balance sheet as of June 30, 2015 and the consideration represents a 50% premium over the preceding three months stock price average.
Dot Hill was founded in 1997 and offers a portfolio of SAN storage arrays, software and data protection services aimed at clients ranging from SMBs to enterprises.
Seagate is planning to use product portfolio of Dot Hill systems to boost its OEM focused cloud storage system and solutions business.
Dot Hill board of directors have approved Seagate’s proposal and the consummation will be completed by this year end.