Seagate would buy rival computer disk-drive maker Maxtor for $ 1.9 billion in stock, aiming to cut combined costs and drive development of new products. The deal, which was priced at a 60 percent premium to Maxtor’s latest closing share price, was done in the interest of acquiring Maxtor’s customer base, rather than any specific technology. The deal would give Seagate an estimated 42-45 percent share of the disk drive market. The deal comes as Maxtor, whose biggest customer is No. 1 personal computer maker Dell has been restructuring and battling increasingly stiff competition. Maxtor has been losing market share to competitors like Seagate and Western Digital in consumer electronics, one of the fastest-growing businesses for computer storage companies.

Seagate would buy rival computer disk-drive maker Maxtor for $ 1.9 billion in stock, aiming to cut combined costs and drive development of new products. The deal, which was priced at a 60 percent premium to Maxtor’s latest closing share price, was done in the interest of acquiring Maxtor’s customer base, rather than any specific technology. The deal would give Seagate an estimated 42-45 percent share of the disk drive market. The deal comes as Maxtor, whose biggest customer is No. 1 personal computer maker Dell has been restructuring and battling increasingly stiff competition. Maxtor has been losing market share to competitors like Seagate and Western Digital in consumer electronics, one of the fastest-growing businesses for computer storage companies.