Seagate Announces Agreement to Acquire Intevac
Seagate Technology Holdings (STX) has announced a definitive agreement to acquire Intevac (IVAC) in an all-cash transaction valued at approximately $119 million. Intevac stockholders will receive $4.00 per share in cash, plus a special dividend of $0.052 per share and a regular quarterly dividend of $0.05 per share, totaling $4.102 per share.
The offer represents a 45% premium to Intevac's closing price of $2.83 on December 11, 2024, and a 21% premium to its February 12, 2025 closing price. Two major stockholders, representing approximately 22% of Intevac's shares, have agreed to support the transaction. The deal is expected to close in late March or early April 2025, subject to customary conditions including a minimum tender of over 50% of shares.
Seagate expects the acquisition to be accretive to non-GAAP EPS over the long-term with minimal short-term impact.
Seagate Technology Holdings (STX) ha annunciato un accordo definitivo per acquisire Intevac (IVAC) in una transazione interamente in contante del valore di circa 119 milioni di dollari. Gli azionisti di Intevac riceveranno 4,00 dollari per azione in contante, oltre a un dividendo speciale di 0,052 dollari per azione e a un dividendo trimestrale regolare di 0,05 dollari per azione, per un totale di 4,102 dollari per azione.
L'offerta rappresenta un premio del 45% rispetto al prezzo di chiusura di Intevac di 2,83 dollari dell'11 dicembre 2024 e un premio del 21% rispetto al prezzo di chiusura del 12 febbraio 2025. Due importanti azionisti, che rappresentano circa il 22% delle azioni di Intevac, hanno accettato di sostenere la transazione. Si prevede che l'accordo si chiuda a fine marzo o inizio aprile 2025, soggetto a condizioni consuete, tra cui un'offerta minima di oltre il 50% delle azioni.
Seagate si aspetta che l'acquisizione sarà accretiva per l'EPS non-GAAP a lungo termine con un impatto minimo nel breve termine.
Seagate Technology Holdings (STX) ha anunciado un acuerdo definitivo para adquirir Intevac (IVAC) en una transacción completamente en efectivo valorada en aproximadamente 119 millones de dólares. Los accionistas de Intevac recibirán 4,00 dólares por acción en efectivo, además de un dividendo especial de 0,052 dólares por acción y un dividendo trimestral regular de 0,05 dólares por acción, totalizando 4,102 dólares por acción.
La oferta representa un premio del 45% sobre el precio de cierre de Intevac de 2,83 dólares del 11 de diciembre de 2024, y un premio del 21% sobre su precio de cierre del 12 de febrero de 2025. Dos importantes accionistas, que representan aproximadamente el 22% de las acciones de Intevac, han acordado apoyar la transacción. Se espera que el acuerdo se cierre a finales de marzo o principios de abril de 2025, sujeto a condiciones habituales, incluida una oferta mínima de más del 50% de las acciones.
Seagate espera que la adquisición sea accretiva para el EPS no-GAAP a largo plazo con un impacto mínimo a corto plazo.
Seagate Technology Holdings (STX)는 현금 거래로 약 1억 1900만 달러에 Intevac (IVAC)을 인수하기 위한 최종 계약을 발표했습니다. Intevac 주주들은 주당 4.00달러의 현금과 함께 주당 0.052달러의 특별 배당금 및 주당 0.05달러의 정기 분기 배당금을 받아 총 4.102달러를 받게 됩니다.
이번 제안은 2024년 12월 11일 Intevac의 종가인 2.83달러에 비해 45%의 프리미엄을 나타내며, 2025년 2월 12일의 종가에 비해서는 21%의 프리미엄입니다. Intevac의 주식 중 약 22%를 차지하는 두 명의 주요 주주가 이 거래를 지지하기로 합의했습니다. 이 거래는 2025년 3월 말 또는 4월 초에 종료될 것으로 예상되며, 50% 이상의 주식에 대한 최소 청구를 포함한 관례적인 조건에 따라 진행됩니다.
Seagate는 이번 인수가 장기적으로 비-GAAP EPS에 긍정적인 영향을 미칠 것으로 예상하며 단기적으로는 최소한의 영향을 미칠 것으로 보고 있습니다.
Seagate Technology Holdings (STX) a annoncé un accord définitif pour acquérir Intevac (IVAC) dans le cadre d'une transaction entièrement en espèces d'une valeur d'environ 119 millions de dollars. Les actionnaires d'Intevac recevront 4,00 dollars par action en espèces, plus un dividende spécial de 0,052 dollars par action et un dividende trimestriel régulier de 0,05 dollars par action, totalisant 4,102 dollars par action.
Cette offre représente un prime de 45% par rapport au prix de clôture d'Intevac de 2,83 dollars le 11 décembre 2024, et un prime de 21% par rapport à son prix de clôture du 12 février 2025. Deux actionnaires majeurs, représentant environ 22% des actions d'Intevac, ont accepté de soutenir la transaction. La conclusion de l'accord est prévue pour fin mars ou début avril 2025, sous réserve des conditions habituelles, y compris une offre minimale de plus de 50% des actions.
Seagate s'attend à ce que l'acquisition soit accretive pour le BPA non-GAAP à long terme avec un impact minimal à court terme.
Seagate Technology Holdings (STX) hat eine endgültige Vereinbarung zur Übernahme von Intevac (IVAC) in einer baren Transaktion im Wert von etwa 119 Millionen Dollar bekannt gegeben. Die Aktionäre von Intevac erhalten 4,00 Dollar pro Aktie in bar, zusätzlich zu einer Sonderdividende von 0,052 Dollar pro Aktie und einer regulären vierteljährlichen Dividende von 0,05 Dollar pro Aktie, was insgesamt 4,102 Dollar pro Aktie ergibt.
Das Angebot stellt einen 45%-Aufschlag auf den Schlusskurs von Intevac von 2,83 Dollar am 11. Dezember 2024 dar und einen 21%-Aufschlag auf den Schlusskurs vom 12. Februar 2025. Zwei große Aktionäre, die etwa 22% der Intevac-Aktien repräsentieren, haben zugestimmt, die Transaktion zu unterstützen. Der Abschluss des Deals wird für Ende März oder Anfang April 2025 erwartet, vorbehaltlich üblicher Bedingungen, einschließlich eines Mindestangebots von über 50% der Aktien.
Seagate erwartet, dass die Übernahme langfristig positiv für das non-GAAP EPS sein wird, mit minimalen kurzfristigen Auswirkungen.
- All-cash transaction provides immediate value to shareholders with 45% premium
- Support from major stockholders holding 22% of shares
- Expected to be accretive to Seagate's non-GAAP EPS long-term
- Minimal impact on Seagate's non-GAAP EPS in the short-term
Insights
This $119 million acquisition represents a calculated move by Seagate to strengthen its vertical integration strategy in the data storage manufacturing space. While the deal size is relatively modest at less than 1% of Seagate's market cap, the strategic implications are significant.
The acquisition of Intevac's thin-film processing systems technology could provide Seagate with several key advantages:
- Enhanced control over critical manufacturing processes for hard drive components
- Potential cost savings through vertical integration and reduced reliance on external suppliers
- Improved ability to innovate and optimize production techniques
- Protection of intellectual property and manufacturing know-how
The deal structure is notably shareholder-friendly, with a
From a financial perspective, the minimal short-term EPS impact and expected long-term accretion indicate a thoughtful approach to integration. The all-cash transaction structure, given Seagate's strong balance sheet, should not significantly impact its financial flexibility.
The timing of this acquisition aligns with broader industry trends toward supply chain control and technological self-sufficiency in critical manufacturing processes. As data storage demands continue to grow, particularly in cloud and enterprise segments, this vertical integration could provide Seagate with enhanced operational efficiency and competitive advantages in manufacturing precision and cost control.
Intevac Stockholders to Receive
Acquisition Delivers Compelling and Certain Cash Value
In connection with the closing of the Transaction, Intevac will pay a one-time special dividend of
As a result of the Transaction, Intevac will no longer hold its earnings call, which was previously scheduled for February 25, 2025.
Transaction Details
The definitive agreement provides for Seagate to launch an all-cash tender offer for all of Intevac’s outstanding shares for
Intevac’s Board of Directors unanimously approved the Transaction and recommends that all stockholders tender their shares in the offer. In addition to the approval by Intevac’s Board of Directors, two of Intevac’s largest stockholders, Palogic Value Fund, L.P. and Bleichroeder LP, who together represent approximately
The Transaction is expected to close in late March or early April 2025, subject to the satisfaction of customary closing conditions. Seagate expects the Transaction to be accretive to the company’s non-GAAP earnings per share (“EPS”) over the long-term and have minimal impact to non-GAAP EPS over the short-term.
Advisors
Houlihan Lokey is serving as financial advisor to Intevac, and Wilson Sonsini Goodrich & Rosati, Professional Corporation is serving as legal advisor to Intevac.
Wachtell, Lipton, Rosen & Katz is serving as legal advisor to Seagate.
About Seagate
Seagate Technology is a leading innovator of mass-capacity data storage. We create breakthrough technology so you can confidently store your data and easily unlock its value. Founded over 45 years ago, Seagate has shipped over four billion terabytes of data capacity and offers a full portfolio of storage devices, systems, and services from edge to cloud. To learn more about how Seagate leads storage innovation, visit www.seagate.com and our blog, or follow us on X, Facebook, LinkedIn, and YouTube.
About Intevac, Inc.
Founded in 1991, we are a leading provider of thin-film process technology and manufacturing platforms for high-volume manufacturing environments. With over 30 years of leadership in designing, developing, and manufacturing high-productivity, thin-film processing systems, we deploy our materials science expertise primarily to the hard disk drive (HDD) industry. Our industry-leading 200 Lean® platform is our flagship system, supporting HDD disk media production, including the industry’s most advanced, leading-edge, heat-assisted magnetic recording (HAMR) media. The majority of Intevac’s HDD business for the last several years has been focused on enabling the upgrades of the installed base of worldwide media capacity in close partnership with our HDD customers, thus enabling their technology roadmaps. For more information call 408-986-9888 or visit the Company's website at www.Intevac.com.
Additional Information and Where to Find It
In connection with the proposed acquisition (the “Transaction”) of Intevac, Inc. (“Intevac”) by Seagate Technology Holdings plc (“Seagate”), Irvine Acquisition Holdings, Inc. (“Bidder”) will commence a tender offer for all of the outstanding shares of Intevac. The tender offer has not yet commenced. This communication is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell shares of Intevac. It is also not a substitute for the tender offer materials that Bidder will file with the
If the tender offer is terminated and the Transaction is to be effected by merger only, in which case, the approval of Intevac stockholders must be obtained, Seagate, Intevac and their respective directors and executive officers may be deemed to be participants in any such solicitation of proxies from Intevac’s stockholders in connection with the Transaction. Information regarding Seagate’s directors and executive officers is available in its most recent proxy statement that was filed with the SEC (and is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/1137789/000113778924000085/stx-20240903.htm). Information regarding Intevac’s directors and executive officers is available in its most recent proxy statement that was filed with the SEC (and is available at https://www.sec.gov/Archives/edgar/data/1001902/000119312524091334/d719495ddef14a.htm). Other information regarding potential participants in any such proxy solicitation will be contained in any proxy statement filed in connection with the Transaction.
Forward-Looking Statements
Certain statements contained in this communication may be characterized as forward-looking under the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially.
Statements in this communication regarding Intevac and Seagate that are forward-looking may include statements regarding: (i) the Transaction; (ii) the anticipated occurrence, manner and timing of the proposed tender offer, (iii) the expected timing of the closing of the Transaction; (iv) considerations taken into account in approving and entering into the Transaction; (v) the anticipated benefits to, or impact of, the Transaction on Intevac’s and Seagate’s respective businesses; and (vi) expectations for Intevac and Seagate following the closing of the Transaction. There can be no assurance that the Transaction will be consummated.
Actual events or results may differ materially from these forward-looking statements. Words such as “anticipate,” “expect,” “intend,” “plan,” “propose,” “provide,” “believe,” “seek,” “estimate,” variations of such words, and similar expressions are intended to identify such forward-looking statements, although not all forward-looking statements contain these identifying words. Risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements, in addition to those identified above, include: (i) the possibility that the conditions to the closing of the Transaction are not satisfied or waived; (ii) uncertainties as to how many of Intevac’s stockholders will tender their stock; (iii) the possibility that competing offers will be made; (iv) the occurrence of any event, change or other circumstance that could give rise to a right to terminate the Transaction; (v) possible disruption related to the Transaction to Intevac’s and Seagate’s current plans, operations and business relationships, including through the loss of customers and employees; (vi) the amount of the costs, fees, expenses and other charges incurred by Intevac and Seagate related to the Transaction; (vii) the risk that Intevac’s or Seagate’s stock price may fluctuate during the pendency of the Transaction; (viii) the diversion of Intevac’s or Seagate’s respective management’s time and attention from ongoing business operations and opportunities; (ix) the response of competitors and other market participants to the Transaction; (x) potential litigation relating to the Transaction; (xi) uncertainty as to timing of completion of the Transaction and the ability of each party to consummate the Transaction; and (xii) and the impact of global macroeconomic conditions and supply chain challenges on Intevac’s or Seagate’s respective businesses.
A more complete description of these and other material risks can be found in the periodic reports that Intevac and Seagate have filed and will file with the SEC, including their Quarterly Reports on Form 10-Q for the quarterly period ended December 27, 2024 and September 28, 2024 for Seagate and Intevac respectively, and their Annual Reports on Forms 10-K for the fiscal year ended June 28, 2024 and December 30, 2023 for Seagate and Intevac respectively, as well as the Schedule TO and related tender offer documents to be filed by Seagate and its acquisition subsidiary, Bidder, the Schedule 14D-9 to be filed by Intevac, and, if applicable, the proxy statement referenced above. All forward-looking statements in this communication are based on information available to Intevac and Seagate as of the date of this communication, and, except as required by law, neither Intevac nor Seagate assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250213031336/en/
For Intevac:
Cameron McAulay
Chief Financial Officer, Intevac
(408) 986-9888
David
KCSA Strategic Communications
Intevac@kcsa.com
(212) 896-1220
For Seagate:
Shanye Hudson
(510) 661-1600
shanye.hudson@seagate.com
Source: Seagate Technology Holdings plc
FAQ
What is the total value of Seagate's acquisition of Intevac (STX)?
What premium does STX's offer represent to Intevac's stock price?
When is the Seagate-Intevac acquisition expected to close?
What dividends will Intevac shareholders receive in the STX acquisition?
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