Seagate Technology, a global leader in data storage solutions, has announced its strategic acquisition of Intevac, a company specializing in thin film deposition systems, in an all-cash deal valued at $119 million. The acquisition will see Seagate purchase Intevac shares at $4 per share through a tender offer. As of the close of trading on Thursday, Intevac's market capitalization stood at approximately $91.17 million.
Seagate plans to initially acquire "at least one share more than 50%" of Intevac's issued and outstanding shares. Following this initial purchase, the company will proceed with a "second step" merger to acquire the remaining shares. This acquisition marks Seagate's first major purchase since its acquisition of Kioxia in 2017. The deal is expected to conclude by late March or early April, pending customary closing conditions.
Founded in 1991 as a spin-off from Varian Associates, Intevac has grown its presence internationally, with operations in China, Malaysia, and Singapore. The company went public in 1995 and has since become a significant player in the production of hard drive disk media and the upgrade of existing hard drive systems. In the third fiscal quarter of 2024, Intevac reported $28.5 million in revenue, reflecting a 59% increase year-over-year, although it posted a net loss of $2.17 million during the same period.
The acquisition has received unanimous approval from Intevac’s board of directors and its largest shareholders. This endorsement underscores the confidence in the potential synergies between Seagate and Intevac's product offerings, particularly in enhancing Seagate's technological capabilities in hard drive production and innovation.
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