Seagate gets Maxtor

Disc drive vendor buys up rival

Storage vendor Seagate has entered into an agreement to aquire rival vendor Maxtor in an all stock transaction. The agreement has been unanimously approved by the boards of directors of both companies and is valued at around $1.9bn.

Bill Watkins, Seagate chief executive, said in a statement: “Seagate is excited about the opportunity to achieve greater scale, reduce supply chain costs, and leverage combined R&D efforts across a broader product set. With the increased scale of the combined company, we can reduce overall product costs and provide more innovative products at more competitive prices. We believe this is a strategic combination that will provide value for our shareholders as well as benefits for our customers.”

Seagate’s executive management team will continue to serve in their current roles. The combined company will retain the Seagate name. Channel plans for the combined company have yet to be announced.