Page 2 of 3
Seagate went private the first time in early 2000 as part of a complicated $20 billion transaction involving Seagate, Veritas Software, and an investment group.
Under that deal, Veritas acquired all of the Veritas shares that at the time were held by Seagate, as well as Seagate's securities in several hardware and software vendors including flash memory manufacturer SanDisk, Fibre Channel switch vendor Gadzoox Networks, drive component manufacturer CPC, and speech recognition software developer Dragon Systems.
Seagate's core operating businesses, including hard disk and tape drive manufacturing and $800 million in cash retained, were then acquired for $2 billion in cash by an investor group which included the drive vendor's management team. Seagate's shareholders received common shares of Veritas plus cash totaling about $77.50 per share of Seagate stock, a premium of about 26 percent.
Seagate eventually went public again in December 2002 to get the capital needed to invest in the fast-growing hard drive market.
Next: Ramifications Of Seagate's Going Private