Fitch: Seagate unaffected by acquisition

Fitch Ratings said Seagate Technologies plc’s BBB- long-term issuer default rating and BBB- rating on its senior unsecured revolving credit facility is unaffected by the acquisition of Dot Hill Systems Corp.

The ratings unaffected also include wholly owned subsidiary HDD Cayman’s long-term issuer default rating of BBB-, senior unsecured revolving credit facility of BBB- and senior unsecured debt rating of BBB-.

Seagate’s acquisition of Dot Hill will expand Seagate’s storage-systems offerings and help accelerate growth for the company’s original equipment manufacturer (OEM)-focused cloud storage systems and solutions business, Fitch said.

Dot Hill will add nearly $250 million of annual revenues, growing in the mid- to high-single digits, and almost $20 million of operating EBITDA.

Under the terms of the definitive agreement, a wholly owned subsidiary of Seagate will commence a tender offer for all of the outstanding shares of Dot Hill in an all-cash transaction valued at $9.75 per share, or about $694 million, the agency said.

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