Seagate Technology Holdings plc, a giant in the data storage industry, has finalized plans to acquire Intevac Inc., known for its thin film deposition systems and equipment. The all-cash transaction is valued at approximately $119 million, shaking hands at $4 per share, as reported in the Silicon Valley Business Journal.
But there's a bit more cash on the table for Intevac shareholders. A special one-time dividend of $0.052 per share will be issued at the closure of the transaction, along with a routine quarterly dividend of $0.05 per share, set to be paid on March 13. This additional consideration raises the effective per-share value to $4.102 for the stockholders of Intevac, which stands at a 45% premium based on the closing price the day before Intevac announced its strategic focus shift on December 11, 2024. These details were disclosed in an announcement shared by Seagate.
The completion of this deal hovers on the condition that more than 50% of Intevac's shares are tendered. Following the successful tender offer, Seagate can acquire the remaining shares not tendered through a second-step merger, maintaining the $4.00 per share cash price. Intevac's board has given the transaction their unanimous thumbs up and is encouraging their shareholders to tender their shares. Major Intevac stockholders, Palogic Value Fund, L.P., and Bleichroeder LP, holding approximately 22% of the shares, have supported the deal.
Seagate, based in Dublin, Ireland, conducts its operations out of Fremont and has recently downsized its Silicon Valley footprint, according to the Silicon Valley Business Journal. The acquisition is poised to complement Seagate's storied history in mass-capacity data storage and is expected to benefit the company's non-GAAP EPS in the long term despite its forecasted minimal impact in the short term. Legal advisors for the deal include Wilson Sonsini Goodrich & Rosati for Intevac, and Wachtell, Lipton, Rosen & Katz is at the helm for Seagate.
