Two of the largest hard drive manufacturers today announced a planned merger worth $1.9 billion. Subject to obtaining shareholder approval as well as regulatory, the combined company would find Seagate acquiring Maxtor.
Under the terms of the deal, Maxtor shareholders would receive .37 shares of Seagate stock for each share of Maxtor they own. Seagate said the combined company “will build on Seagate's foundation as the premier global hard disc drive company, leveraging the strength of Seagate's significant operating scale to drive product innovation, maximize operational efficiencies, and realize significant cost synergies. These capabilities will enable the combined company to compete more effectively as the highly competitive data storage industry addresses the challenges and opportunities for significant growth that lie ahead. The combined company will be well-positioned to accelerate delivery of a diverse set of compelling and cost-effective solutions to the growing customer base for data storage products.”
The combined company will retain the Seagate name and executive offices will be located in Scotts Valley, California.
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