NEW YORK (TheStreet) -- Shares of Hutchinson Technology (HTCH) were gaining 102.9% to $3.55 on Monday following the announcement that TDK Corp. (TTDKY) will acquire the disk drive suspension assemblies supplier company in an all-cash deal.

TDK will acquire all outstanding shares of HTI for up to $4 a share under the terms of the agreement. The $4 a share price consists of a $3.62 a share base price and an additional 38 cents a share depending on the level of cash less any outstanding borrowing on HTI's revolving line of credit held on the last day of the fiscal month before the closing date.

The companies expect the deal to close in the first quarter of 2016.

"This transaction represents a compelling opportunity for Hutchinson Technology shareholders, employees, customers and suppliers," HTI President and CEO Rick Penn said in a statement. "By combining the market position, resources and scale of TDK with our precision component manufacturing capabilities, we can ensure that our customers have access to the advanced technology they need."

HTI also reported its financial results for the fourth quarter of fiscal 2015 on Friday. The company reported a loss of 20 cents a share for the quarter, compared to analysts' estimates of a loss of 24 cents a share. Revenue fell 9.8% year over year to $63.4 million for the quarter, compared to analysts' estimates of $60.9 million.

TheStreet Ratings team rates HUTCHINSON TECHNOLOGY INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

We rate HUTCHINSON TECHNOLOGY INC (HTCH) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow, poor profit margins, generally disappointing historical performance in the stock itself and generally high debt management risk.

You can view the full analysis from the report here: HTCH

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