Seagate Technology plc (Nasdaq: STX) has agreed to acquire rival Dot Hill Systems Corp. (Nasdaq: HILL) for $694 million in cash.

The purchase price values Dot Hill at $9.75 per share. Dot Hill closed at $5.18 on August 18.

Longmont, Colorado-based Dot Hill, founded in 1999, makes storage software that collects data in real time. Dot Hill will complement Seagate’s storage services and will become part of the buyer’s cloud systems and electronics solutions business.

“Dot Hill’s innovative storage systems and IP portfolio are a strategic addition to our technology portfolio, enabling us to accelerate the growth of Seagate’s OEM-focused cloud storage system and solutions business,” says Seagate president of cloud systems and electronics solutions Phil Brace.

Perella Weinberg Partners and Wilson Sonsini Goodrich & Rosati are advising Seagate. Morgan Stanley & Co. (NYSE: MS), Needham & Co. and Cooley LLP are Dot Hill’s advisers.

Other recent cloud deals include: Golden Gate Capital-backed Infor’s $675 million purchase of GT Nexus; Thoma Bravo’s acquisition of iPipeline; and TPG’s and Leonard Green’s deal for Ellucian.

Thomas Bravo won Mergers and Acquisitions’ M&A Mid-Market award for Deal of the Year with the $930 million purchase of TravelClick, which was completed in May. 

Subscribe Now

Complete access to real-time information and analysis of news and trends in the industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.