Dot Hill Systems (HILL) Stock Soars on Seagate (STX) Buy

The per share price is an 88 percent premium to where Dot Hill’s stock closed Tuesday, at $5.18.

Dot Hill Systems Corp (NASDAQ:HILL) stock is now trading 31.39% below its 52-week-high, 64.97% above its 52-week-low.

It operates a channel model through a number of global reseller and distribution partners.

Shares of storage equipment vendor Dot Hill Systems (HILL) are up $4.42, or over 85%, at $9.60, in late trading, after being briefly halted, just before disk drive maker Seagate Technology (STX) this evening said it would purchase the company for $9.75 per share in a tender offer, a $645 million value, counting the $49 million on Dot Hill’s balance sheet.

The storage heavyweight said the acquisition will help it move to the cloud.

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.

The deal is subject to customary closing terms.

Seagate tapped Perella Weinberg Partners as financial advisor with Wilson Sonsini Goodrich & Rosati onboard as its primary legal advisor.

Seagate creates space for the human experience by innovating how data is stored, shared and used.

Dot Hill Systems Corp (HILL) current short interest stands at 1.22 million shares. In today’s interconnected world, Dot Hill storage solutions support people accessing information, and machines collecting sensor data, all in real time. The Company also offers enterprise class RAID software for industry standard Windows and Linux servers, as well as storage management applications. Headquartered in Longmont, Colo., Dot Hill has offices and/or representatives in the United States, Europe, and Asia.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. (NASDAQ:HILL) last announced its quarterly earnings results on Thursday, August 6th.

Company officials were not available to comment late Tuesday.