[as2k3]

SEAGATE and Maxtor confirmed the acquisition. The deal is worth $1.9 billion. The firms said the combination will be 10-20% accretive on a cash EPS basis after the first full year of combined operations. The combined company will save around $300 million in operating expenses after the first full year of integration, Seagate said. The transaction will be completed in the second half of next year. If the deal falls apart, Maxtor will pick up $300 million. The two firms will continue as separate companies until the close of the deal.