By Ian Jones, 30 March 2000 10:57
NEWS Disk drive giant, Seagate Technology, has taken the unexpected move of going private in a landmark $20bn deal. The company claims the move will give it a stable platform from which to invest in new technologies, protecting it from the whims of investors on the New York Stock Exchange. The deal involves an investor group made up of Silver Lake Partners, the Seagate management team and Texas Pacific Corporation, which will buy the Seagate operating business for $2bn in cash. Veritas Software was 33 per cent owned by Seagate, but will now acquire all 128 million shares in the company, as well as the investment securities of CVC, Dragon Systems, Gadzoox Networks and SanDisk held by Seagate. Veritas will also acquire all cash on Seagate's balance sheet above $800m of working capital, and take on existing debt repayments, taxes and other liabilities. Meanwhile, Seagate stockholders will receive approximately $77.50 per share - almost $3 above yesterday's closing market price. For every Seagate share, each investor will receive $5 cash and 0.467 Veritas shares.
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