Dot Hill Acquires Chaparral Network Storage

   Storage networking company Dot Hill Systems has completed its acquisition of Chaparral Network Storage, a developer of specialized storage appliances, RAID controllers, and data routers. Dot Hill plans to use Chaparral's technology within its storage systems and to extend its product line and customer base. "One of Dot Hill's strategic goals is to increase the amount of proprietary intellectual property within our storage systems. We expect that this acquisition will enhance our technological edge and enable us to more fully control future product engineering, improve sales margins, increase our market share, and better compete at the midrange market level," said Jim Lambert, Dot Hill's president and CEO.
   The acquisition was valued at approximately $62 million in cash and $10.4 million in specified obligations. According to Dot Hill, Chaparral's revenues for the 9-month period ending December 31, 2003, were $8.7 million. Chaparral will continue to operate at its current Longmont, Colorado, location, which will become Dot Hill's Controller Technology Center and a Dot Hill regional office.