- 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
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
"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
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..
Maxtor Corporation is a leading supplier of information storage
solutions. The company's current hard disk drive products include the
award-winning DiamondMax(tm) and DiamondMax Plus line of products for
mainstream and high performance personal computers and consumer
electronics applications, as well as the DiamondMax VL line for
entry-level PCs. Maxtor also offers a new 1394 External Storage(tm)
solution and the MaxAttach(tm) family of network attached storage
servers. Maxtor's leadership position has been built by consistently
providing leading products, and by delivering high levels of quality
and support for its customers. www.maxtor.com
Note: Maxtor and the Maxtor logo are registered trademarks of
This release contains forward-looking statements concerning the
integration of Maxtor with Quantum HDD and the outlook for Maxtor
going forward. These statements are based on current expectations
and are subject to risks and uncertainties which could materially
affect the company's results, including, but not limited to, risks in
Maxtor's ability to successfully integrate businesses of Quantum's
HDD operations and Maxtor, costs related to the merger, market demand
for hard disk drives and server appliances, market acceptance of the
company's products, the company's ability to execute future
production ramps and utilize manufacturing assets efficiently,
changes in product and customer mix, pricing trends, and actions by
competitors. These and other risk factors are contained in periodic
reports filed by Maxtor Corporation with the Securities Exchange
Commission, including, but not limited to, Maxtor's Form 10-K for
fiscal 2000, recent Forms 10-Q and the registration statement on Form
S-4 related to the combination with Quantum HDD.
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