Dot Hill Systems Corporation (Nasdaq: HILL) is closing down its Israeli technology development center in Petah Tivka, after two years. The center is based on the acquisition of Cloverleaf Communications for $12.5 million in January 2010.
Cloverleaf was an Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) spin-off that developed intelligent storage networking solutions.
Dot Hill said that the closing of the Israeli center will cost $5.5 million, 40% of which will not be cash charges. It added that it has "begun marketing the Cloverleaf asset to prospective acquirers and while there has been interest, there is no assurance it will find a suitable buyer on a timely basis. Unless an acquirer can be identified, most of the employees will not be employed by the Company after March 31, 2012."
Dot Hill launched its AssuredUVS virtual storage software product line in November 2010 on the basis of Cloverleaf's product.
Published by Globes [online], Israel business news - www.globes-online.com - on February 7, 2012
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