MUMBAI: Seagate Technology Holdings plc (Nasdaq: STX), a mass-data storage firm, has announced plans to acquire thin-film processing systems supplier Intevac Inc (Nasdaq: IVAC) in an all-cash transaction valued at £119m.

Under the terms of the agreement, Seagate will pay $4.00 per share, whilst Intevac will distribute a one-time special dividend of $0.052 per share upon closing. The company's board of directors has also declared a regular quarterly dividend of $0.05 per share, payable on 13 March 2025 to stockholders of record as of 28 February 2025.

The total consideration of $4.102 per share, including both dividends, represents a 45 per cent premium to Intevac's closing price of $2.83 on 11 December 2024, and a 21 per cent premium to its closing price of $3.38 on 12 February 2025.

The transaction will proceed via an all-cash tender offer for all outstanding Intevac shares, subject to a minimum tender condition of 50 per cent plus one share. Two of Intevac's largest stockholders, Palogic Value Fund LP and Bleichroeder LP, who collectively hold approximately 22 per cent of outstanding shares, have agreed to support the deal.

Intevac, founded in 1991, is known for its thin-film process technology and manufacturing platforms, particularly serving the hard disk drive industry with its 200 Lean platform. The company has been instrumental in enabling heat-assisted magnetic recording media production.

The acquisition, expected to close in late March or early April 2025, has received unanimous approval from Intevac's board of directors. Seagate anticipates the deal will positively impact its non-GAAP earnings per share over the long term.

Houlihan Lokey is serving as financial adviser to Intevac, with Wilson Sonsini Goodrich & Rosati as legal adviser. Wachtell, Lipton, Rosen & Katz is acting as legal adviser to Seagate.