Seagate is expanding its portfolio again through the acquisition of software and hardware storage maker Dot Hill Systems.
Founded in 1997, Dot Hill Systems comes with a myriad of storage arrays, software and data protection services aimed at clients ranging from SMBs to the enterprise.
Phil Brace, president of cloud systems and electronic solutions at Seagate, explained in prepared remarks that the hardware giant plans to use Dot Hill's IP and external storage array-based systems to boost Seagate's OEM-focused cloud storage system and solutions business.
Seagate is financing an all-cash transaction, paying approximately $694 million for Dot Hill, translating to roughly $9.75 per share.
Dot Hill had $49 million in cash on the balance sheet as of June 30, putting the Colorado-based company at a value of roughly $645 million, according to the announcement.
Seagate tapped Perella Weinberg Partners as financial advisor with Wilson Sonsini Goodrich & Rosati onboard as its primary legal advisor. Morgan Stanley and Needham & Company are working as financial advisors for Dot Hill with Cooley LLP signed for legal.
The transaction is expected to go through by the end of the fourth quarter of 2015.