SAN FRANCISCO (03/29/2000) - U.S. storage management company Veritas Software Corp. is partnering with a private investment group to buy hard disk drive maker Seagate Technology Inc. for US$20 billion in stock and cash, the companies announced today.
Headed by Silver Lake Partners, the investor group includes Seagate management and Texas Pacific Group, the companies said in a statement issued today. Once the purchase is final, the new owners of Seagate will divide the assets between themselves, the companies said.
Most importantly for Veritas, the company will be able to reclaim 33 percent ownership, or about 128 million shares in Veritas stock previously owned by Seagate, the companies said.
The transaction is expected to close by the third quarter of this year. Just prior to the closing of the transaction between Veritas and Seagate, Seagate executives and the investment group will pay $2 billion in cash for Seagate's four business lines, the companies said.
Seagate, in Scotts Valley, California, can be reached at +1-831-438-6550, or at http://www.seagate.com/. Veritas, in Mountain View, California, can be contacted at +1-650-335-8000, or at http://www.veritas.com/. Silver Lake Partners, in Menlo Park, California, can be contacted at +1-650-233-8120, or at http://www.slpartners.com/.