NEW YORK, Dec 21 (Reuters) – Computer disk drive supplier Seagate Technology has agreed to buy rival Maxtor Corp. for $1.9 billion in stock, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.

The paper said the deal is expected to be unveiled later in the day, with Seagate planning to swap 0.37 of a Seagate share for each Maxtor share.

Under the terms of the deal, as reported by the Journal, the transaction is worth about $7.25 a share for Maxtor investors, a 60 percent premium to its closing price on Tuesday.

Both the Seagate and Maxtor boards have approved the deal, the paper reported, which will unit two big hard drive makers.

The Journal, citing people familiar with the deal, said the companies are likely to argue to antitrust regulators that consumers would benefit because of cost efficiencies, among other things.

Neither Seagate nor Maxtor representatives could be immediately reached for comment.

Source: Reuters