Today Seagate announced plans to buy data storage system maker Dot Hill Systems for approximately $645 million. The offer of $9.77 per share price is an 88 percent premium to where Dot Hill’s stock closed Tuesday, at $5.18. In after-market trading, the stock surged $4.42, or 85 percent, to $9.60.
The companies expect the sale to close during the fourth quarter, assuming Dot Hill Systems Corp. shareholders tender their shares in support of the move.
According to Seagate, Dot Hill will become part of its cloud systems and electronics solutions business
Seagate Technology PLC reported $13.74 billion in revenue in its last fiscal year, which ended in July. Dot Hill Systems, of Longmont, Colorado, had $217.7 million in revenue in 2014.