Seagate has reached a deal to acquire rival Maxtor for approximately USD 1.9 billion in stock. The resulting company is expected to save around USD 300 million annually in operating costs after the first year of integration. Maxtor had been losing money in four of the last five quarters. Barring problems with regulators or shareholders, the acquisition should be completed during the second half of 2006, with Seagate executives running the company from there on.