Seagate acquires Intevac, which makes hard drive drives for $ 119 million

Seagate, the data storage company has declared his intention to acquire IntevacA hard drive manufacturer in a deal for all money worth $ 119 million.

Seagate said on Thursday that it will pay $ 4 per share in an Intevac auction offer, which is being traded publicly. Initially, Seagate will buy a minimum of “at least one share over 50%” from the issued and unpaid Intevac shares and then perform a “second step” merger to acquire the other shares of the company.

The Board of Directors of Intevac and the largest shareholders unanimously approved the transaction. Seagate expects it to close in late March or early April, provided that the usual closing conditions.

Santa Clara -based Intevac, founded in 1991, as a rotation by Varian Associates technology company, produces a thin film deposition systems. This was IPO’D in 1995 and over the years has expanded its print to territories, including China, Malaysia and Singapore.

On its website, Intavec says its products support the production of the hard disk disk and the upgrade of existing hard disk systems. One of the technologies that the company publishes as a preferred solution, magnetic recording of heat, or HAMR, improves “writing” and storage density of hard drives by applying heat.

It is not difficult to see how this fits tightly into the Seagate disk disc. In December, Seagate declared His first Hamr -based hard drive, after a two decade from Tech, and the company plans to deliver HAMR -based disks to several customers, including a “leading cloud provider” this year.

Several seagate rivals, including Western Digital and Toshiba, also work on HAMR -based discs, encouraged by growing worldwide demand for storage. HAMR -based discs usually have an advantage of costs over existing solid technologies, which makes them particularly attractive to public cloud providers.

Intavec’s The market cap was about $ 91.17 million Since Thursday. In its latest fiscal quarter (Q3 2024), the company scored $ 28.5 million revenue, which is 59% compared to the previous year, but reported a net loss of $ 2.17 million.

Intavec at the end of last year said He studied “strategic variants” and underwent restructuring that the company expected to “significantly increase its profitability”. One of these strategic options was a way out of the public markets, it seems.

Intavec is on Seagate First main acquisition As the company purchased Kioxia, a flash memory and hard drive supplier, in 2017 Seagate made 11 acquisitions in its 46-year history, According to the financial database TRACXNFor a total of about $ 18 billion.