New Delhi: US-headquartered storage solutions provider Seagate Technology on Wednesday said it will acquire Dot Hill Systems for USD 694 million (around Rs 4,525 crore).
In a joint statement, the firms said "they have entered into a definitive agreement under which a wholly-owned indirect subsidiary of Seagate will commence a tender offer for all of the outstanding shares of Dot Hill in an all-cash transaction valued at USD 9.75 per share, or a total of approximately USD 694 million."
Dot Hill shares closed at USD 5.18 at Nasdaq on Tuesday.
It further said: "As Dot Hill has on its balance sheet approximately USD 49 million in cash as of June 30, 2015, the transaction reflects an enterprise value of approximately USD 645 million."
Seagate President of Cloud Systems and Electronics Solutions Phil Brace said: "Dot Hill's innovative storage systems and IP portfolio are a strategic addition to our storage technology portfolio, enabling us to accelerate the growth of Seagate's OEM-focused cloud storage system and solutions business."
Elaborating on the transaction, the statement said: "Following the successful completion of the tender offer, Seagate will acquire all remaining shares not tendered in the tender offer through a second-step merger at the same price as to be paid to stockholders tendering their shares in the tender offer."
The transaction is expected to close during the fourth calendar quarter of 2015, subject to the satisfaction of customary closing conditions and the receipt of certain regulatory approvals.
Perella Weinberg Partners served as financial advisor and Wilson Sonsini Goodrich and Rosati served as primary legal advisor to Seagate in connection with the transaction.
Morgan Stanley and Needham & Company served as the financial advisors and Cooley served as legal advisor to Dot Hill.
