Shareholders Approve Seagate Technology Acquisition of Maxtor
May 17 2006 - 4:05PM
PR Newswire (US)
Combination Will Provide Increased Scale to Drive Product
Innovation, Maximize Operational Efficiencies SCOTTS VALLEY, Calif.
and MILPITAS, Calif., May 17 /PRNewswire-FirstCall/ -- Seagate
Technology (NYSE:STX), and Maxtor Corporation (NYSE:MXO) announced
today that Seagate shareholders and Maxtor stockholders have
approved the previously announced definitive merger agreement under
which Seagate will acquire Maxtor in an all stock transaction. With
all required regulatory and shareholder approvals now secured, it
is expected that the transaction will close in 2-3 business days
and that Maxtor shares will cease to be listed on the New York
Stock Exchange before the market opens on Monday, May 22, 2006.
"Seagate has approached this transaction much differently than
traditional mergers and acquisitions. This combination will deliver
greater scale by leveraging Seagate's successful business model and
is not intended to be a traditional integration of product lines or
operations," said Bill Watkins, Seagate's President and CEO. "The
acquisition of Maxtor will further build on Seagate's foundation as
the premier global hard disc drive company and strengthens our
ability to drive future growth by providing enhanced operating
scale and key resources to fuel product innovation, maximize
efficiency and realize significant cost benefits. The scale gained
with this acquisition is needed to meet the world's growing demand
for sharing and storing digital content. Seagate's continued
investment in burgeoning markets like Consumer Electronics and
Branded Solutions, as well as our core computing markets, has seen
our product set grow from eight to 30 products over the last three
years and is now on pace to reach almost 50 products over the next
two years. Leveraging increased scale with Seagate's successful
product platform strategy, we believe the combined company is
best-positioned to deliver to global customers a more compelling,
diverse set of products at more competitive prices, to meet the
growing demand for storage." The approvals were obtained at special
meeting of Seagate shareholders and an annual meeting of Maxtor
stockholders, held by each company earlier today. Under the
previously announced terms of the transaction, Maxtor stockholders
will receive 0.37 shares of Seagate common stock for each Maxtor
share they owned at the closing. Conference Call Information
Company management plans to hold a conference call to discuss the
completion of the acquisition on May 22, 2006, at 8:00 a.m. Eastern
Time. The conference call can be accessed online at
http://www.seagate.com/ or by telephone as follows: USA:
877-223-6202 International: 706-679-3742 Replay A replay will be
available beginning May 22 at 8 p.m. Pacific Time through May 29 at
8:59 p.m. Pacific Time. The replay can be accessed from
http://www.seagate.com/newsinfo/invest or by telephone as follows:
USA: 800-642-1687 International: 706-645-9291 Conference ID:
9162676 About Seagate Seagate is the worldwide leader in the
design, manufacturing and marketing of hard disc drives, providing
products for a wide-range of Enterprise, Desktop, Mobile Computing,
and Consumer Electronics applications. Seagate's business model
leverages technology leadership and world-class manufacturing to
deliver industry-leading innovation and quality to its global
customers, and to be the low cost producer in all markets in which
it participates. The company is committed to providing
award-winning products, customer support and reliability to meet
the world's growing demand for information storage. Seagate can be
found around the globe and at http://www.seagate.com/. NOTE:
Seagate, Seagate Technology and the Wave logo are registered
trademarks of Seagate Technology LLC. About Maxtor Maxtor
Corporation (http://www.maxtor.com/) is one of the world's leading
suppliers of information storage solutions. The company has an
expansive line of storage products for desktop computers, near-line
storage, high-performance Intel-based servers and consumer
electronics. Maxtor has a reputation as a proven market leader
built by consistently providing high-quality products, and services
and support for its customers. Maxtor and its products can be found
at http://www.maxtor.com/ or by calling toll-free (800) 2-MAXTOR.
Maxtor is traded on the NYSE under the MXO symbol. DATASOURCE:
Maxtor Corporation CONTACT: investors, Rod Cooper of Seagate,
+1-831-439-2371; or investors, Jenifer Kirtland of Maxtor,
+1-408-324-7056, or media, Woody Monroy of Seagate, +1-831-439-2838
Web site: http://www.maxtor.com/ http://www.seagate.com/
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