Seagate to Acquire Maxtor for $1.9 Billion
Some big news in the storage industry has hit the press today, Seagate is to acquire Maxtor for $1.9 Billion. After a year of the merger, approximately $300 million is expected to be saved from operating expenses.
"Under the terms of the agreement, which has been unanimously approved by the boards of directors of both companies, Maxtor shareholders will receive .37 shares of Seagate common stock for each Maxtor share they own. When the transaction is completed Seagate shareholders will own approximately 84 percent and Maxtor shareholders will own approximately 16 percent of the combined company. The value of the transaction is approximately $1.9 billion."