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Seagate acquires Intevac, which makes equipment for hard disk drives, for $119M
Seagate has announced its acquisition of Intevac, a hard drive equipment producer, for $119 million. The deal, which was approved by Intevac's board and major shareholders, will strengthen Seagate's position in the hard drive market and is expected to close by early April 2024. Intevac specializes in thin film deposition systems and heat-assisted magnetic recording technology.
Key points
- Seagate acquires Intevac for $119 million.
- The acquisition involves a tender offer of $4 per share.
- Seagate will first acquire over 50% of Intevac's shares before merging.
- Intevac, founded in 1991, specializes in hard drive production equipment and had a market cap of $91.17 million.
- Intevac's recent fiscal report showed a 59% revenue increase year-over-year but a net loss of $2.17 million.
- Seagate aims to strengthen its position in the hard drive market, particularly with HAMR technology, which improves storage density and costs for cloud services.
Why it matters
- This acquisition aligns with the growing demand for storage solutions in the IT industry.
- Seagate's move follows trends in 2025 that highlight the shift towards advanced storage technologies like HAMR.
- Competing firms such as Western Digital and Toshiba are also developing similar technologies, indicating a competitive landscape.
Seagate's acquisition of Intevac is a strategic move to enhance its capabilities in hard drive production, particularly in the HAMR technology space, thus positioning itself favorably against competitors and meeting rising storage demands.