Seagate acquires Maxtor

Maybe this means nothing to you. However, to folks like me that build computers for fun and profit, hearing the following news about blew me out of my chair!

With Maxtor being under financial pressure over the past couple of years due to a string of quarterly losses and manufacturing problems which resulted in having to shut down production for a short interval earlier this year, it was only a matter of time before it was snapped up by one of its competitors. It happened today, as hard drive manufacturer Seagate has agreed to purchase its rival Maxtor for US$1.9 billion.

The new company will be headed up by Seagate’s current management team and will be known as Seagate. Maxtor shareholders will receive 0.37 shares of Seagate common stock in exchange for each share of Maxtor they own. Once the deal is wrapped up, former Maxtor shareholders will own a combined 16 percent stake in the enlarged Seagate. [Read the rest]