Seagate, data storage company, has announced his intention to get IntevacA hard drive equipment producer in an all-cash deal worth $ 119 million.
Seagate said on Thursday that it would pay $ 4 per share on an offer for Intevac, which is publicly negotiated. Seagate will initially buy at least “at least one share more than 50%” of Intevac’s issued and pending shares and then execute a “second step” merger to obtain the rest of the company’s shares.
The Intevac Board of Directors and the largest shareholders unanimously approved the transaction. Seagate expects to close at the end of March or early April, without prejudice to the usual closing conditions.
Intevac based in Santa Clara, founded in 1991 as a spin-off by the Varian Associates technology company, is manufacturing fine films. In 1995, it has expanded its imprint over the years in territories such as China, Malaysia and Singapore.
On its website, Intavec states that its products support the production of hard drive media and upgrading existing hard drive systems. One of the technologies that the business has as its preferred solution, a heated recording, or HAMR improves “graphic” and hard drive storage density by applying thermal energy.
It is not difficult to see how this fits exactly to Seagate’s hard drive business. In December, Seagate announced The first HAMR -based hard disk after a two -decades pause from technology and the company plans to transfer HAMR -based movements to various customers, including a “top cloud provider” this year.
Many of Seagate’s opponents, including Western Digital and Toshiba, also work on Hamr -based discs, promoted by increasing global demand for storage. HAMR -based discs generally have a cost advantage over damaged solid state technologies, making them particularly attractive to clouds.
Intavec’s Market ceiling was about $ 91.17 million from Thursday. In the latest budgetary quarter (Q3 2024), the company earned revenue of $ 28.5 million, increased by $ 59% annually, but published net loss of $ 2.17 million.
Intavec at the end of last year said It explored “strategic choices” and underwent a restructuring that the company that is expected to “substantially boost its profitability”. One of these strategic choices was an exit from public markets, it seems.
Intavec is Seagate’s First great acquisition Since the company bought Kioxia, Flash Memory Supplier and Solid Status Units in 2017. Seagate made 11 acquisitions in its 46 -year history, According to the financial database of TRCXNtotaling about $ 18 billion.
