This week, Seagate Technology announced its intention to acquire Dot Hill Systems Corp. According to the press release, Seagate plans to commence with a tender offer for all of the outstanding shares of Dot Hill in an all-cash transaction valued at $9.75 per share. If you do the math, that will equate to approximately $694 million. Dot Hill does, however, have approximately $49 million in cash, so the deal reflects a value of $645 million. Depending on how you project out DotHill’s revenue for the rest of the year, the acquisition price reflects around 2.3X to 2.6X revenue. As far as prices go, this one can be considered affordable or expensive depending on which other acquisitions you use as a comparison, so I guess that means it is probably a reasonable price.