Seagate Moves to Acquire Intevac in Strategic Expansion Effort

Seagate Technology Acquires Intevac: What You Need to Know

In a move that’s shaking up the tech landscape, Seagate Technology, a powerhouse in mass-capacity data storage, has announced it will acquire Intevac, Inc., a key player in thin-film processing systems. The deal is set to be an all-cash transaction, with Seagate offering $4.00 per share. But there’s more to this story than just a simple buyout.

As part of this acquisition, Intevac will also be issuing a one-time special dividend of $0.052 per share, expected to be paid around the same time the deal closes. If you’re keeping track, that brings the total payout to Intevac stockholders to a tidy $4.052 per share. And if you throw in the regular quarterly dividend of $0.05, which is set for distribution on March 13, 2025, the total climbs to $4.102 per share. Not too shabby, right? This represents a hefty premium of 45% over Intevac’s closing price of $2.83 on December 11, 2024, just before they revealed their renewed focus on strategic options.

How Will This Affect Intevac?

With this acquisition, Intevac will be stepping back from its previously scheduled earnings call on February 25, 2025. So, what does this mean for the company and its shareholders? Well, the deal is backed by Intevac’s Board of Directors, which has unanimously approved the transaction and is encouraging all stockholders to tender their shares. Additionally, two of Intevac’s largest shareholders, Palogic Value Fund and Bleichroeder LP, holding about 22% of the company’s shares, are on board with the plan.

The deal is expected to close sometime in late March or early April 2025, pending the usual closing conditions. Seagate is optimistic that this acquisition will be a long-term win, boosting its non-GAAP earnings per share (EPS) while having a minimal short-term impact.

What’s Next for Seagate?

So, what does this mean for Seagate? The company is gearing up for a significant expansion in its capabilities, thanks to Intevac’s technology. The acquisition aligns perfectly with Seagate’s strategy to enhance its data storage solutions, and it’s likely to create a ripple effect across the industry.

In terms of advisory support, Houlihan Lokey is stepping in as the financial advisor for Intevac, while Wilson Sonsini Goodrich & Rosati is handling the legal side. On the flip side, Seagate is being advised by Wachtell, Lipton, Rosen & Katz.

In a world where data is king, this acquisition could be a game-changer. As we watch these developments unfold, it’s clear that the tech industry is always full of surprises. Will this acquisition set a new standard for data storage? Only time will tell!

Background Information

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About Seagate:

Seagate Technology, founded in 1978, is a leading data storage solutions provider that specializes in hard drives and storage solutions for consumers, businesses, and data centers. With a reputation for reliability and innovation, Seagate's products address diverse storage needs, from individual data storage to large-scale enterprise environments. The company has played a crucial role in shaping the data storage landscape and continues to be at the forefront of technological advancements.

  

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