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Author: Maxtor Corporation
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Views: 29,604 /
Created: April 2, 2001
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Maxtor Corporation Becomes World's Largest Hard Disk Drive Company With The Completion of Quantum HDD Merger
MILPITAS, Calif., April 2 /PRNewswire/ -- Maxtor Corporation
(Nasdaq: MXTR) today announced the completion of its merger with Quantum HDD,
a transaction that establishes Maxtor as the world's largest hard disk drive
manufacturer based on annual combined unit shipments and a leader in the
delivery of storage solutions and technology. Combined revenues from Maxtor
and Quantum HDD were approximately $6 billion in 2000.
The product range of the merged company includes hard disk drives for an
array of applications including desktop PCs and advanced servers, to network
attached storage solutions and consumer electronics products. Additionally,
Maxtor's financial strength, excellent ability to execute, and intellectual
property portfolio will allow the company to not only maintain a leadership
position in hard disk drives, but also enable Maxtor to expand rapidly into
new and growing storage segments.
"This merger is a historic moment for Maxtor, and we are very excited
about the opportunities it offers to our customers, shareholders, and
employees," said Mike Cannon, president and CEO. "We now have a very broad
line of products, an even stronger customer base, and the financial resources
to capitalize on the growth opportunities in storage.
"There is virtually no form of technology out there that won't be touched
in one way or another by storage," continued Cannon. "With the completion of
the merger, we believe Maxtor is the best positioned company to provide the
products, service and support that will be required to be the leader in the
storage industry."
According to industry analysts, the need for storage will continue to grow
aggressively among all market segments over the next few years.
"Storage is at an incredible intersection point. One where technology
advancement, the emergence of networked computing architecture, and the
delivery of rich media are all converging," said Crawford Del Prete, senior
vice president of International Data Corporation's Hardware Research.
"Storage has something to offer all of these areas, making it an immense
opportunity for years to come. Maxtor is strategically equipped to not only
capture value in its traditional HDD business, but also from its NAS and
consumer electronics storage initiatives, placing them in a very strong
competitive market position."
The merger is expected to provide cost savings between $120 million and
$200 million annualized within 18 to 24 months. These savings will allow
Maxtor to lower the breakeven point of the combined company, which will create
additional financial resources that can be used for investments in developing
new technologies and products to address emerging markets for storage.
Maxtor also today announced the appointment of Paul Tufano, Maxtor senior
vice president, finance, and chief financial officer, to the additional
position of chief operating officer. Michael Brown, Quantum's chairman and
CEO, has also joined Maxtor's Board of Directors.
Under the terms of the transaction, Quantum HDD shareholders will receive
1.52 shares of Maxtor stock for each share of Quantum HDD that they own. The
transaction is expected to be tax-free to Maxtor, Quantum, and their
respective stockholders and will be accounted for under the purchase method of
accounting.
The new Company's stock will be traded under the symbol MXTR on the NASDAQ
Stock Exchange.
Maxtor will provide an outlook on the second quarter 2001 for the combined
company when it announces its first quarter results at the end of April.
About Maxtor
Maxtor Corporation (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, network storage, high-performance
Intel-based servers, and consumer electronics. Maxtor has a reputation of
being a proven market leader built by providing consistent high-quality
products, and service and support for its customers. Maxtor and its products
can be found at www.maxtor.com or by calling toll-free (800) 2-MAXTOR. Maxtor
is traded on the NASDAQ under the MXTR symbol.
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