Seagate Technology has acquired Dot Hill Systems, a supplier of software and hardware storage systems, for approximately $694 million.
The transaction has been unanimously approved by Dot Hill's Board of Directors and is currently expected to close during the fourth calendar quarter of 2015.
Dot Hill's external storage array-based systems and software products will complement and expand Seagate's storage systems offerings and be offered as part of Seagate's Cloud Systems and Electronics Solutions business, according to a statement.
Seagate will leverage Dot Hill's storage technology IP portfolio and software capabilities to drive innovation and provide incremental value to their combined OEM customer base, the company says.
"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," says Phil Brace, Seagate president of Cloud Systems and Electronics Solutions.
"We are focused on providing the highest quality storage systems for our OEM customers and Dot Hill's storage solutions will enable us to advance our strategic efforts.
"We look forward to welcoming Dot Hill's strong team, which has proven experience in developing and delivering best-in-class storage solutions that are trusted by the world's leading IT manufacturers and their channel partners, and we expect the transaction to be accretive to non-GAAP earnings in fiscal 2016," he says.
"Seagate has a strong reputation in enterprise storage and is focused on building out its best-in-class storage system capabilities, making them the right home for the talented Dot Hill team," says Dana Kammersgard, Dot Hill CEO.
"Dot Hill's customers will benefit from leveraging Seagate's leading technology and infrastructure to accelerate the delivery of advanced solutions," she says.
