Seagate to acquire Maxtor

Hard-drive specialist Seagate is to acquire storage company Maxtor in an all-stock transaction valued at around US$1.9 billion, the companies said overnight (AEDT).

Hard-drive specialist Seagate is to acquire storage company Maxtor in an all-stock transaction valued at around US$1.9 billion, the companies said overnight (AEDT).

In a statement, the companies said the transaction -- expected to be completed in the second half of 2006 pending shareholder and regulatory approvals -- would allow the combined entity to compete more effectively in the data storage industry.

Under the terms of the deal -- 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 around 84 percent and Maxtor shareholders 16 percent of the combined company.

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