Seagate Confirms Buyout Talks Underway


(Reuters) - Hard drive maker Seagate Technology Plc said on Thursday it is in talks to be taken private by an undisclosed buyer, and two sources familiar with the matter said those talks involve buyout firm TPG Capital.

If a deal is clinched, it would be one of the biggest leveraged buyouts of the year. The firm had a market capitalization of over $6 billion, based on its share price at the close of trading on Thursday.

TPG Capital and rival private equity firm Silver Lake previously held early-stage discussions about buying the hard-drive manufacturer, a source familiar with the matter told Reuters in September. The talks were early-stage and faltered, that source said at the time.

Silver Lake, however, is not involved anymore, a source familiar with the situation said on Thursday. It was unclear whether TPG is now working with another party, or seeking another party to team up with.

Other private equity firms could also be interested in Seagate such as Bain Capital, a source familiar with the situation said. Bain has been involved in other large technology deals such as chipmaker NXP Semiconductors and Sungard Data Systems.

Daily Tech:

The traditional hard drive market is down with many computers, tablets, and other electronic devices that need storage moving to faster and more rugged flash-based offerings. That means that sales of traditional HDDs are faltering due to increased demand on the market for tablets like the iPad that are taking sales from the notebooks and netbooks.

The largest hard drive maker in the market is Seagate and the company has announced that it is in talks to be purchased by a private buyer and taken off the publicly traded market.  Seagate is mum on exactly what company it is in talks with and this is not the first time that Seagate has entered talks with a buyer. ... ay/article19900.htm