Seagate, the second world manufacturer of hard drives and one of the storage hardware companies, has announced the acquisition of intevac for an amount of about 119 million dollars in cash. It is the first important purchase of Seagate Since acquired in 2017 the specialist in flash memory products and solid state units, Kioxia.
Seagate will pay $ 4 per share in a public offer for the acquisition of intevac, which is quoted in the stock market. Seagate will initially Buy a minimum of “At least one more than 50%action” of the actions issued and in circulation of intevac, and then execute a fusion to acquire the remaining actions of the company.
The Board of Directors of Intevac and the majority shareholders have unanimously approved A transaction that Seagate expects to close at the end of March or early April. At the end of last year, Intavec said he was exploring “strategic options” and that he was carrying out a restructuring that, as he foresaw, “would materially strengthen his profitability.” Apparently, one of those strategic options was to get out of public markets.
Seagate Buy Intevac, for what?
Intevac, based in Santa Clara, founded in 1991 as a splitting of the technological firm Vrian Associates, designs and manufactures components for storage units. He went out in 1995 and has expanded his presence over the years to territories such as China, Malaysia and Singapore.
On its website, Intavec states that its products are compatible with the production of hard drives and the update of existing hard drives systems. One of the technologies that the company promotes is Magnetic recording assisted by heat or Hamrthe improvement of writing capacity and storage density.
Although solid state units completely dominate customer storage and have already been introduced into servers, Data centers are still fed by hard drives. And taking into account that the data to be managed do not stop growing, they are increasingly used in a greater number and with greater capacity.
With this in mind, it is not difficult to verify how the intevac acquisition fits the Seagate hard drives business. In December, the company announced the launch of the new exos M solution that matched the greatest worldwide storage capacity with 32 TBytes.
In addition, the album uses heat -assisted magnetic recording technology (Hammer). It is one of the characteristic that intevac promotes and there is the interest of Seagate, planning the sending of HAMR -based units to several clients, including a “Leading cloud supplier”.
Several of Seagate’s rivals, including Western Digital and Toshiba, are also working on HAMR -based units, promoted for the growing worldwide storage demand. HAMR -based units usually have a cost advantage over existing solid state technologies, which makes them especially attractive for public cloud suppliers.
