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Seagate Goes Private

In a byzantine transaction last night, Seagate Technology Inc. became a private company. The deal is valued at approximately $20 billion.

The maker of computer storage held one third of Veritas Software Corp. (www.veritas.com), which produces software and hardware for storage systems. Veritas will buy back Seagate’s stake in the company, as well as shares in affiliated companies, such as Gadzoox Networks Inc. and Dragon Systems Inc.

A group of investors, led by Silver Lake Partners, will buy the stripped-down Seagate (www.seagate.com) for $2 billion in stock and cash. After the transaction, Seagate will become a privately held company.

Seagate stockholders will receive approximately $77.50 for each share, consisting of $5 and slightly less than half a share of Veritas.

The transaction should be completed in the third quarter, pending approval of Veritas and Seagate stockholders. - Christopher McConnell

About the Author

Scott Bekker is editor in chief of Redmond Channel Partner magazine.