New Maxtor Well Positioned to Drive a Wide Range of Storage Solutions
MILPITAS, Calif., April 2, 2001-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.
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.
Note: Maxtor and the Maxtor logo are registered trademarks of Maxtor Corporation.
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 stateme!
nt on Form S-4 related to the combination with Quantum HDD.
A. Cory Maloy
Wilson McHenry Company
Stephen Humphrey/Nicola Welch
Tel: +44 (0) 1962 888100
Fax: +44 (0) 1962 888125
This press release was distributed by ResponseSource Press Release Wire on behalf of MCC International Ltd in the following categories: Consumer Technology, Personal Finance, Business & Finance, Computing & Telecoms, for more information visit https://pressreleasewire.responsesource.com/about.