“Burp, there goes Maxtor!” Oh come on, we had to see this coming. With everyone trying to consolidate and all, it just makes sense all the way around.
Seagate has completed its merger with smaller rival Maxtor, after shareholders agreed to the merger yesterday. The deal, announced last December, values Maxtor at around $2bn.
Maxtor lost $102m on revenue of $881m in the first three months of this year, which means revenues are 17pc down and losses have increase fivefold from a year ago. Seagate, by contrast, has enjoyed better fortune in recent years. The most recent earnings saw revenue of $2.29bn and net income of $274m.
Maxtor’s focus on retail and branding has left it vulnerable, while Seagate’s OEM strengths saw it well placed to ride the demand for notebook drives. Almost eighteen months ago Maxtor admitted it had abandoned its attempt to build out a line of 2.5 inch drives used in notebook PCs.
13,500 Maxtor staff join the 43,000 employed by Seagate. Source: The Register