Storage provider Maxtor Corp. this week said it will buy Quantum Corp.'s hard-disk drive group for an estimated US$2.3 billion in stock.
The combined company is expected to ship more than 50 million hard drives annually for use in desktop computers, Intel-based servers, and consumer electronics applications, according to a company statement. The combined company is expected to offer a range of hard drives, SCSI drives, consumer-electronic hard disk drives, and NAS (network-attached storage).
Maxtor officials said the company will maintain Quantum's current manufacturing relationship with Matsushita-Kotobuki Electronics Industries and also will continue to utilize its current manufacturing capability, including its center in Singapore.
The transaction, which was unanimously approved by the boards of directors of both companies, will create a business with annual revenues of $6 billion, Maxtor officials said. The acquisition is expected to be completed by early 2001.