Workflow
Seagate acquires Intevac, which makes equipment for hard disk drives, for $119M
IVACIntevac(IVAC) TechCrunch·2025-02-13 17:47

Acquisition Details - Seagate intends to acquire Intevac for 119millioninanall−cashdeal,offering119 million in an all-cash deal, offering 4 per share in a tender offer [1] - The acquisition will involve Seagate purchasing at least one share more than 50% of Intevac's outstanding shares, followed by a second-step merger [1] Approval and Timeline - Intevac's board of directors and largest shareholders have unanimously approved the transaction [2] - The deal is expected to close in late March or early April, pending customary closing conditions [2] Company Background - Intevac, founded in 1991, specializes in manufacturing thin film deposition systems and has expanded its operations to regions including China, Malaysia, and Singapore [2] - The company had a market cap of approximately 91.17millionasoftheannouncement[6]FinancialPerformance−Intevacreported91.17 million as of the announcement [6] Financial Performance - Intevac reported 28.5 million in revenue for Q3 2024, a 59% increase year-over-year, but incurred a net loss of 2.17million[6]−Thecompanyhasbeenexploringstrategicoptionsandrestructuringtoenhanceprofitability,includingapotentialexitfrompublicmarkets[6]TechnologyandMarketPosition−Intevac′sproductssupportharddrivemediaproductionandupgrades,withafocusonheat−assistedmagneticrecording(HAMR)technology,whichenhancesstoragedensity[3]−Seagate′srecentintroductionofHAMR−basedharddrivesalignswiththeacquisition,asitplanstoshipthesedrivestovariouscustomers,includingaleadingcloudprovider[4]CompetitiveLandscape−Seagate′scompetitors,suchasWesternDigitalandToshiba,arealsodevelopingHAMR−baseddrivestomeettheincreasingglobaldemandforstoragesolutions[5]−HAMRtechnologyoffersacostadvantageovertraditionalsolid−statetechnologies,makingitappealingtopubliccloudvendors[5]HistoricalContext−ThisacquisitionmarksSeagate′sfirstmajorpurchasesinceacquiringKioxiain2017,andithasmadeatotalof11acquisitionsinits46−yearhistory,amountingtoaround2.17 million [6] - The company has been exploring strategic options and restructuring to enhance profitability, including a potential exit from public markets [6] Technology and Market Position - Intevac's products support hard drive media production and upgrades, with a focus on heat-assisted magnetic recording (HAMR) technology, which enhances storage density [3] - Seagate's recent introduction of HAMR-based hard drives aligns with the acquisition, as it plans to ship these drives to various customers, including a leading cloud provider [4] Competitive Landscape - Seagate's competitors, such as Western Digital and Toshiba, are also developing HAMR-based drives to meet the increasing global demand for storage solutions [5] - HAMR technology offers a cost advantage over traditional solid-state technologies, making it appealing to public cloud vendors [5] Historical Context - This acquisition marks Seagate's first major purchase since acquiring Kioxia in 2017, and it has made a total of 11 acquisitions in its 46-year history, amounting to around 18 billion [7]