A Key Acquisition in the Data Storage Sector
Seagate Technology Holdings plc, a leading provider of data storage solutions, has announced a definitive agreement to acquire Intevac, Inc., a supplier of thin-film processing systems, in a cash transaction valued at approximately $119 million.
The transaction is expected to close between March and April 2025, and includes a payment of $4.00 per share, in addition to a special dividend of $0.052 per share and the regular quarterly dividend of $0.05. This represents a 45% premium over Intevac’s closing price last December and a 21% premium as of February 12, 2025.
The agreement has been unanimously approved by Intevac’s board of directors, which has recommended that its shareholders accept the offer. Furthermore, two of the company’s largest shareholders, Palogic Value Fund and Bleichroeder LP, owning a combined 22% of the shares, have backed the transaction.
Acquisition Details
The agreement provides for Seagate to launch a cash tender offer for all outstanding shares of Intevac. Once completed, Seagate will absorb the remaining shares through a second-step merger, maintaining the purchase price of $4.00 per share.
Intevac has canceled its financial results conference, scheduled for February 25, as a result of this acquisition.
Seagate has emphasized that the purchase of Intevac will have a positive long-term impact on its adjusted earnings per share (EPS), although the short-term effect will be limited.
Why Intevac is Key for Seagate?
Founded in 1991, Intevac is a prominent player in the development of thin-film processing technology, used in the manufacturing of hard disk drives (HDDs). Its flagship platform, 200 Lean®, is essential for producing disks with heat-assisted magnetic recording (HAMR) technology, which is considered crucial for the next generation of high-density storage.
In recent years, the company has focused on modernizing and upgrading global HDD production capabilities in collaboration with its industry clients.
For Seagate, acquiring Intevac means strengthening its supply chain and ensuring the development of new technologies to increase data storage capacity, a priority in a market where demand continues to grow exponentially.
Implications for the Industry
This move reinforces the trend of consolidation in the data storage sector, where competition to improve HDD capacity and efficiency has intensified.
Moreover, the acquisition of Intevac comes at a time when HAMR technology is emerging as the key to achieving storage capacities of up to 100 TB in the coming years, a crucial advantage in sectors such as cloud computing, data centers, and artificial intelligence.
According to analysts, the integration of Intevac into Seagate could lead to manufacturing cost optimization and increased speed in implementing technological improvements in storage products.
Conclusion: A Strategic Move for Seagate
With this acquisition, Seagate not only secures access to key technology for the next generation of hard drives, but also strengthens its position in an increasingly competitive market.
If the transaction closes within the expected timeframe, Seagate will solidify its leadership in data storage, an industry where capacity and efficiency have become top priorities.