Hard disk drive manufacturer
Seagate Technology announced Wednesday that its shareholders and shareholders of Maxtor have approved a previously announced merger agreement.
Under the terms of the agreement, Seagate will acquire Maxtor in an all-stock transaction: each Maxtor share is worth 0.37 shares of Seagate common stock. Now that regulatory and shareholder approval is done, Seagate expects to close the deal within 2-3 business days. Maxtor shares will cease to be listed on the NYSE before the market opens next Monday.
Seagate President and CEO Bill Watkins explained that this acquisition is different than the traditional routine where product lines and operations are integrated. Instead, Seagate plans to use Maxtor to deliver greater operating scale.
“The scale gained with this acquisition is needed to meet the world’s growing demand for sharing and storing digital content,” said Watkins in a statement.