The rumors have been fulfilled, and AMD today announced the acquisition of Xilinx, the expert in manufacturing FPGAs of all shapes and sizes, including large FPGAs with up to 4.4 million logic cells as integrated by the Virtex UltraScale + FPGA, the main one. competitor of Intel’s Stratix 10, so with this acquisition, AMD fully enters the FPGA market where it will seek to continue to make a dent in Intel’s market share.
Most interesting of all is the cost of the acquisition: 35,000 million dollars, money that AMD does not have, but it has been smart and has made an exchange of shares, which, without a doubt, this afternoon will see their value soar.
AMD and Xilinx today announced that they have reached a definitive agreement for AMD to acquire Xilinx in a stock transaction valued at $ 35 billion. The combination will create the industry-leading high-performance computing company, significantly expanding the breadth of AMD’s product portfolio and client pool in diverse growth markets where Xilinx is an established leader. The transaction is expected to immediately increase AMD’s margins, earnings per share (EPS) and free cash flow generation, and provide industry-leading growth.
The acquisition brings together two industry leaders with complementary customer and product portfolios. AMD will offer the industry’s strongest portfolio of high-performance processor technologies, combining CPUs, GPUs, FPGAs, adaptive SoCs, and deep software expertise to enable leadership in computing platforms for cloud, edge and end devices. Together, the combined company will capitalize on opportunities spanning some of the industry’s most important growth segments, from the data center to gaming, PCs, communications, automotive, industrial, aerospace and defense.
“Our acquisition of Xilinx marks the next step in our journey to establish AMD as the industry leader in high-performance computing and a partner of choice for the world’s largest and most important technology companies,” said AMD President and CEO, Dr. Lisa Su.
“This is truly a compelling combination that will create significant value for all stakeholders, including AMD and Xilinx shareholders, who will benefit from the future growth and growth potential of the combined company. The Xilinx team is one of the strongest in the industry and we are delighted to welcome them to the AMD family. Combining our world-class engineering teams and deep field experience, we will create an industry leader with the vision, talent, and scale to defining the future of high-performance computing. “
“We are excited to join the AMD family. Our shared cultures of innovation, excellence, and collaboration make this an ideal combination. Together, we will lead the new era of high-performance and adaptive computing,” said Victor Peng, president and CEO of Xilinx.
“Our leading FPGAs, Adaptive SoCs, accelerators, and SmartNIC solutions enable innovation from the cloud, to the edge, and to end devices. We empower our customers to deploy differentiated platforms to market faster, with optimal efficiency and performance. AMD will help accelerate the growth of our data center business and allow us to pursue a broader customer base in more markets. “
With a combined team of 13,000 talented engineers and more than $ 2.7 billion in annual R&D investment1, AMD will have the additional talent and scale to deliver an even stronger set of domain-specific products and solutions.
Additional details of the transaction
Under the terms of the agreement, Xilinx shareholders will receive a fixed exchange ratio of 1.7234 AMD common shares for each Xilinx common share they own at the close of the transaction. Based on the terms of trade, this represents approximately $ 143 per share of Xilinx common stock. After closing, current AMD shareholders will own approximately 74 percent of the combined company on a fully diluted basis, while Xilinx shareholders will own approximately 26 percent.
The transaction has been unanimously approved by the Boards of Directors of AMD and Xilinx. The acquisition is subject to the approval of AMD and Xilinx shareholders, certain regulatory approvals and other customary closing conditions. The transaction is currently expected to close at the end of calendar year 2021 . Until closing, the parties remain separate and independent companies.
Administration and Board of Directors
Dr. Lisa Su will lead the combined company as CEO. Xilinx President and CEO Victor Peng will join AMD as president responsible for Xilinx’s business and strategic growth initiatives, effective upon closing of the transaction. Additionally, at least two Xilinx directors will join AMD’s Board of Directors upon closing.