Seagate Technology Is Finally Taking Over Maxtor

Seagate Technology today announced that it has finally completed its acquisition of Maxtor Corporation, as the united company will preserve its initial name - Seagate - and that it will be listed on the New York Stock Exchange as "STX."


According to Seagate officials, the last stage of the take over process will be finalized in first moths of the next year, with an estimated annual profit per share of 10-20%, after the first financial year of the recently created company.

"Our integration teams have made excellent progress on addressing customer requirements, continuity of supply, the optimization of manufacturing and production capacity, and workforce planning," said Dave Wickersham, executive vice president and CEO. "As a result we have an opportunity to substantially complete our integration plan in six to nine months."

Seagate also stated that almost half of Maxtor's employees will be offered new jobs in the recently created company, preferring to highlight the benefits, and not the fact that this final statement puts out of sight the piece of information that more than 50% of Maxtor's employees will be fired, probably when the take over process will end.

In December 2005, both companies announced that they have entered into a definitive agreement under which Seagate will acquire Maxtor in an all stock transaction. Under the terms of the agreement, 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 estimated at approximately $1.9 billion.