Seagate to acquire Intevac for $4.00 per share in cash

FREMONT, Calif. & SANTA CLARA, Calif. - Seagate Technology Holdings plc (NASDAQ:STX), a global leader in mass-capacity data storage solutions, has agreed to purchase Intevac , Inc. (NASDAQ:IVAC), a provider of thin-film processing systems, for $4.00 per share in an all-cash transaction. This acquisition is expected to close in late March or early April 2025, pending customary closing conditions and minimum tender requirements.

Intevac shareholders are set to receive a total consideration of $4.102 per share, which includes a one-time special dividend of $0.052 per share and a regular quarterly dividend of $0.05 per share. The special dividend is slated for distribution around the transaction’s closing date, while the regular dividend will be paid on March 13, 2025, to shareholders of record as of February 28, 2025. The offer represents a 45% premium over Intevac’s closing price on December 11, 2024, and a 21% premium over the closing price on February 12, 2025, valuing the deal at approximately $119 million including both dividends. InvestingPro analysis shows Intevac trading at attractive valuations with a price-to-book ratio of 0.81, suggesting the deal provides fair value to shareholders.

The definitive agreement between the companies stipulates that Seagate will commence a tender offer for all outstanding shares of Intevac. Intevac’s Board of Directors has unanimously approved the deal and recommends that shareholders tender their shares. Two of Intevac’s largest shareholders have agreed to support the transaction.

Seagate anticipates that the acquisition will be accretive to its non-GAAP earnings per share over the long term, with minimal impact in the short term. Houlihan Lokey (NYSE:HLI) and Wilson Sonsini Goodrich & Rosati, Professional Corporation are serving as financial and legal advisors to Intevac, respectively. Wachtell, Lipton, Rosen & Katz is acting as legal advisor to Seagate.

This transaction follows Intevac’s decision to explore strategic alternatives, which was announced following the closing price on December 11, 2024. Intevac has canceled its earnings call previously scheduled for February 25, 2025, due to the pending acquisition.

The information in this article is based on a press release statement.

In other recent news, Intevac, a provider of thin-film processing systems, has projected significant financial growth, with an anticipated revenue of $52-$55 million for 2025. The company’s strategic initiatives include a shift in focus to the Hard Disk Drive (HDD) sector following underperformance in its TRIO technology, which resulted in a one-time charge of up to $35 million. Intevac’s HDD business is expected to generate $200 million in revenue over the next three years.

The revenue projection is driven by the industry-wide adoption of Heat-Assisted Magnetic Recording (HAMR) technology, which meets the growing needs of data centers and artificial intelligence. Intevac has secured a second significant customer for HAMR, marking a key development in its restructuring efforts to streamline operations and increase efficiency.

In addition, Intevac plans to initiate a quarterly dividend of $0.05 per share starting in the first quarter of 2025, pending Board approval. The company has retained Houlihan Lokey Capital, Inc. to explore strategic alternatives to increase shareholder value, further indicating its commitment to growth. However, Intevac has not set a definitive timetable for these strategic alternatives and will disclose further developments only if a specific transaction is approved or the review concludes.

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