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# Seagate to Acquire Intevac

## Intevac Acquisition Terms Revealed

Seagate, a leading data storage company, has announced its intention to acquire Intevac, a hard drive equipment producer, in an all-cash deal worth $119 million.

### Deal Structure and Details

Seagate will pay $4 per share in a tender offer for Intevac, which is publicly traded. The company will initially purchase a minimum of “at least one share more than 50%” of Intevac’s issued and outstanding shares, and then execute a “second step” merger to acquire the company’s remaining shares.

## Approval and Expected Closure

Intevac’s board of directors and largest shareholders have unanimously approved the transaction. Seagate expects it to close in late March or early April, subject to customary closing conditions.

## About Intevac

Intevac is a Santa Clara-based company that manufactures thin film deposition systems. Founded in 1991 as a spin-off from tech firm Varian Associates, it IPO’d in 1995 and has expanded its footprint to territories including China, Malaysia, and Singapore.

## Product Offerings

On its website, Intevac states that its products support hard drive disk media production and the upgrade of existing hard drive systems. One of the technologies that the firm touts as its preferred solution, heat-assisted magnetic recording (HAMR), improves the “writeability” and storage density of hard drives by applying heat energy.

## Strategic Significance

The acquisition is strategic for Seagate, as it follows the company’s recent announcement of its first HAMR-based hard drive in December, after a two-decade hiatus. Seagate plans to ship HAMR-based drives to several customers, including a “leading cloud provider,” this year. Several of Seagate’s rivals, including Western Digital and Toshiba, are also working on HAMR-based drives.

## Financial Context

Intevac’s market capitalization was around $91.17 million as of Thursday. In its most recent fiscal quarter (Q3 2024), the firm notched $28.5 million in revenue, up 59% year-over-year, but posted a $2.17 million net loss.

## Previous Restructuring and Market Performance

Intevac late last year said it was exploring “strategic options” and undergoing a restructuring that the company anticipated would “materially strengthen its profitability.” One of those strategic options was an exit from the public markets, which seems to be the case. Intevac is Seagate’s first major acquisition since the company bought Kioxia, a supplier of flash memory and solid-state drives, in 2017.

## Acquisitions and Acquisition Activity

Seagate has made 11 acquisitions in its 46-year history, according to financial database Tracxn, totaling around $18 billion.


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