Results 1 to 2 of 2

Thread: Seagate Buys Maxtor!!!!

  1. #1
    Registered User
    Join Date
    Oct 2005
    0 times in 0 posts

    Seagate Buys Maxtor!!!!

    Let's see .. Maxtor bought Quantum, Seagate now buys Maxtor. Hmm, we need competition tojkeep these prices low so I do not know what to make of this just yet. The more competition the better ..

    Seagate and Maxtor today jointly announced they have entered into a definitive agreement under which Seagate will acquire Maxtor in an all stock transaction. 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% and Maxtor shareholders will own approximately 16% of the combined company. The value of the transaction is approximately $1.9 billion.

    The combination of Seagate and Maxtor 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 is expected to generate significant synergies, and the transaction is expected to be at least 10-20% accretive to Seagate on a cash EPS basis after the first full year of combined operations. As with other past combinations of disc drive manufacturers, revenue attrition is anticipated to result from this combination. Synergy estimates take into account anticipated revenue attrition. It is estimated that the incremental revenues will generate gross margins that are in line with the high end of Seagate’s stand-alone model. In addition, the combined company expects to achieve approximately $300 million of annual operating expense savings in connection with the transaction after the first full year of integration.

    Hmm, I wonder what the new drivers will be called ... Seator ? MaxGate ?


  2. #2
    Purple Member
    Join Date
    Aug 2004
    30 times in 23 posts
    • Tarffie's system
      • Motherboard:
      • Abit IP-35 Pro
      • CPU:
      • Q6600
      • Memory:
      • 2gb Crucial Ballistix Tracer DDR2 (PC2-8500C5)
      • Storage:
      • 250gb + 500gb
      • Graphics card(s):
      • 8800GT 512mb w/ Accelero S1
      • PSU:
      • Corsair HX620
      • Case:
      • Antec P182
      • Operating System:
      • Windows 7
      • Monitor(s):
      • Dell 2408wfp & 2405fpw
      • Internet:
      • Virgin Media 50Mb/s

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. Seagate to buy Maxtor for $2 billion
    By Steve in forum HEXUS News
    Replies: 24
    Last Post: 22-12-2005, 01:04 PM
  2. Maxtor warranty only 1 year? should be 3yr
    By philyau in forum
    Replies: 0
    Last Post: 27-08-2005, 07:02 PM
  3. Seagate SATA drive noiser than IDE?
    By Furton in forum PC Hardware and Components
    Replies: 0
    Last Post: 20-06-2005, 08:05 PM
  4. Maxtor Onetouch drive locked?
    By kushtibari in forum Help! Quick Relief From Tech Headaches
    Replies: 2
    Last Post: 26-04-2005, 05:29 PM
  5. Maxtor HD RMA
    By XTR in forum PC Hardware and Components
    Replies: 13
    Last Post: 01-01-2004, 11:58 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts