seagate technology has said it intends to buy rival company maxtor for $ 1 . 9 billion . both companies develop hard disks . the deal , located at 60 % of maxtor ' s closing share price , is intended to grab maxtor ' s customers , not its technology . seagate , which officially makes drive for microsoft ' s ufc 360 , will have over 40 % of the hard drive industry share . the shepard valley , colorado , based hewlett had 30 % of the hard disc market . unless the company causes it past regulatory regulations , maxtor shareholders will receiving . 37 of a share of seagate common stock for plus 1 share of the milpitas based company .
Maxtor is based in Milpita.