Quantum becomes Maxtor
Maxtor Corp. will buy Quantum Hard Drive Disk Corp. (a division of the Quantum Corporation that is not included in the agreement) for $ 1.3 billion and become the world's largest hard disk manufacturer, the exchange of outstanding shares (1 Quantum share = 1.52 Maxtor shares which will total approximately $ 2.3 billion) will be defined by early 2001.
The union of the two companies will allow, within 18/24 months from the final agreement, annual savings of between 120 and 200 million dollars and therefore Maxtor Corp. will have a capacity of 50 million hard discs that can be produced in The combined company will have a total stock market value of $ 2.3 billion, based on Maxtor's current market capitalization and the value of the Quantum acquisition, according to a Maxtor spokeswoman.
Quantum brings the experience of the partner (for 16 years) Matsushita-Kotobuki Electronics Industries, Ltd.
Maxtor counts Hyundai Electronics America with 35% of its shares among its shareholders.
Currently, the market share that hard disks divide is structured as follows: Seagate 21%, Quantum 18% and Maxtor 13.5%.
Needless to say, Quantum HDD gained a lot on the stock exchange, 38.5% in one sitting.