According to Seagate, the move will help both companies "maximize operational efficiencies," realize significant cost savings and accelerate time to market for new products.
"Together, we will leverage our combined technical resources to deliver to our customers an even more compelling and diverse set of products, and get them to market more quickly and cost effectively," says Dr. C.S. Park, chairman and CEO of Maxtor Corp.
Steve Luczo, Seagate chairman, Steve Luczo says, "This transaction has significant strategic and financial benefits, and the combined company will be better positioned to anticipate and serve the needs of the global customer base in the highly competitive data storage market."
The combined company will retain the Seagate name, and executive offices will be located in Scotts Valley, California. Park will become a company director once the transaction is complete.