It was incorporated in 1978, as Shugart Technology. They were a major supplier in the microcomputer market during the 1980s, especially after the introduction of the IBM XT in 1983. November 1, 1978, and commenced operations with co-founders Al Shugart, Tom Mitchell, Doug Mahon, Finis Conner and Syed Iftikar in October 1979. The company’s first product, the 5-barracuda 7200.7 patch ata ST-506, was released in 1980.
It was the first hard disk to fit the 5. 25-inch form factor of the Shugart “mini-floppy” drive. Imprimis Technology, CDC’s disk storage division, resulting in a combined market share of 43 percent. In September 1991, Tom Mitchell resigned as president under pressure from the board of directors, with Al Shugart reassuming presidency of the company. Shugart refocused the company on its more lucrative markets and on mainframe drives instead of external drives. He also pulled away from the practice of outsourcing the production of components overseas, which allowed Seagate to better keep up with demand as the demand for PCs increased extremely rapidly in 1993 across the market.
In May 1993, Seagate became the first company to cumulatively ship 50 million HDDs over its firm’s history. The following year Seagate Technology Inc moved from the Nasdaq exchange to the New York Stock Exchange, trading under the ticker symbol SEG. In May 1995, Seagate Technology acquired Frye Computer Systems, a software company based in Boston, Massachusetts. In 1996, Seagate introduced the industry’s first hard disk with a 10,000-RPM spindle speed, the Cheetah 4LP. The product increased to a speed of 15,000-RPM by 2000 with the release of the Cheetah 15X. In 1997, Seagate experienced a downturn, along with the rest of the industry. In July 1998, Shugart resigned his positions with the company.
Steve” Luczo became the new chief executive officer, also joining the board of directors. Luczo had joined Seagate Technology in October 1993 as Senior Vice President of Corporate Development. In March 1995, he was appointed Executive Vice President of Corporate Development and chief operating officer of Seagate Software Holdings. In 1998, the board appointed Luczo as the new CEO and Seagate launched a restructuring effort. Historically, Seagate’s design centers had been organized around function, with one product line manager in charge of tracking the progress of all programs. 30 million investment that focused on future technologies and prototypes.
Technology developed by the center would include devices like the hard drive disk for Microsoft’s first Xbox. In 1999, Seagate shipped its 250 millionth hard drive. Veritas Software in return for 155 million shares of Veritas’ stock. In 2000, Seagate became a private company again.
Luczo led a management buyout of Seagate, believing that Seagate needed to make significant capital investments to achieve its goals. He decided to turn the company private, since disk drive producers had a hard time obtaining capital for long-term projects. In early November 1999, Luczo met with representatives of Silver Lake Partners to discuss a major restructuring of Seagate. After two failed attempts to increase Seagate’s stock price and unlock its value from Veritas, Seagate’s board of directors authorized Luczo to seek advice from Morgan Stanley in October 1999.
Both the Stanford Graduate School of Business and the Harvard Business School have written multiple case studies on the Seagate buyout and turnaround. In addition, several leading management books have cited the Seagate turnaround in the contents. Luczo became the Chairman of the board of directors of Seagate Technology on June 19, 2002. In 2003, he accepted an invitation from the New York Stock Exchange to join its Listed Companies Advisory Committee.