Seagate and Maxtor announced announced Seagateis plan to acquire Maxtor on Wednesday. The deal between the two hard drive manufacturers calls for Seagate to purchase Maxtor in an all-stock transaction. Both companies produce industry standard Mac compatible hard drives, as well as other data storage products.
The transaction, which is estimated at US$1.9 billion, will give Maxtor stock holders .37 shares of Seagate common stock for each share of Maxtor stock they own. The deal is expected to close in the second half of 2006.
Seagate is currently trading at $19.30, down 0.30 (1.53%), and Maxtor is trading at $6.51, up 0.99 (44.03%).