After a deal was reported to be in the works months ago, shareholders for both Seagate and Maxtor have approved a merger of the hard drive giants. Under the deal, Seagate will acquire Maxtor, whose profits had seen a sharp decline over the recent market periods. The changes are expected to take two to three business days to take effect. Maxtor will no longer be listed on the New York Stock Exchange when the markets open this coming Monday, the 22nd.
"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 company will hold a conference call this Monday which will be distributed for replay on its website.