Seagate, a renowned data storage solutions provider, has acquired Intevac, a manufacturer of cutting-edge equipment used in hard drive production. The all-cash deal is valued at approximately $119 million.
Under the agreement, Seagate will initially acquire a majority stake in Intevac through a tender offer, followed by a merger to secure the remaining shares. The transaction has received the unanimous approval of Intevac’s board and largest shareholders. Completion is anticipated in late March or early April.
Intevac, headquartered in Santa Clara, specializes in developing advanced thin film deposition systems. Its technology plays a crucial role in hard drive disk media production and the enhancement of existing systems. The company’s expertise in heat-assisted magnetic recording (HAMR) technology aligns seamlessly with Seagate’s focus on innovating hard drive solutions.
HAMR technology enhances the data storage capabilities of hard drives by utilizing heat to improve writeability and density. Seagate recently introduced its first HAMR-based hard drive, and plans to ship these drives to multiple customers, including a prominent cloud provider.
The acquisition of Intevac will strengthen Seagate’s position in the competitive market for hard drive solutions. The integration of Intevac’s technology and expertise will provide Seagate with a competitive advantage in meeting the growing demand for storage, particularly in the public cloud sector.
Intevac’s market capitalization stood at approximately $91.17 million prior to the announcement. The company’s revenue in its recent fiscal quarter experienced a 59% year-over-year growth, reaching $28.5 million.
This acquisition marks Seagate’s first major acquisition since its purchase of Kioxia, a flash memory and solid-state drive supplier, in 2017. The company’s strategic acquisition history includes 11 transactions, totaling around $18 billion.
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