Storage provider Maxtor on Wednesday announced it will buy Quantum's hard disk drive group for an estimated US$2.3 billion in stock.
The new combined company is expected to ship more than 50 million hard drives annually for use in desktop computers, Intel Corp.-based servers and consumer electronic applications, the company said in a statement. The combined company is expected to offer a range of hard drives, SCSI (Small Computer System Interface) drives, consumer electronic hard disk drives and network attached storage (NAS).
Maxtor said the company will maintain Quantum's current manufacturing relationship with Matsushita-Kotobuki Electronics Industries and also 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 said. The acquisition is expected to be completed by early 2001, the company said.
Quantum's DLT and Storage Systems Group is not involved in the acquisition and will operate as its own company.