Feeds

Seagate to buy Maxtor

Rival acquired for $1.9bn

SANS - Survey on application security programs

Seagate its to acquire rival hard disk drive maker Maxtor the two companies announced today, in a stock-swap valued at $1.9bn.

If shareholders and regulators back the deal, Seagate will offer 0.37 of its own shares for every Maxtor share issued, splitting the merged business 84:16 between Seagate and Maxtor shareholders.

The deal is a classic attempt to cut costs and achieve better economies of scale by bringing two companies together - 'Maxgate' expects to achieve approximately $300m of annual operating expense savings "after the first full year of integration". It also eliminates a competitor.

The last couple of years have proved hard for hard disk makers, thanks to aggressive competition, falling margins and plunging prices. In October, Maxtor fell back into the red after a brief stint in profitability. It lost $7.1m on sales of $926m.

Seagate, the most successful of HDD companies of late, announced net income of $272m on sales of $2.09bn in what was effectively the same three-month period.

Once the acquisition has been completed - sometime in H2 2006 - the merged company will trade as Seagate and continue to be run by Seagate executives. Maxtor CEO and chairman, C S Park, gets a directorship in the merged operation. Until then, the two companies will operate as separate businesses.

Seagate said it is sticking by its previous forecast of Q2 FY2006 - due to end 31 December 2005 - sales of $2.2bn with earnings within the 53-57 cents a share range. ®

SANS - Survey on application security programs

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.