In yet another big consolidation in the industry, AMD announced it has entered into a definitive agreement to acquire Xilinx today. The deal is said to be an all-stock transaction valued at roughly $35 billion. The combined technology of the two vendors will create one of the largest high-performance computing companies.
In yet another big consolidation in the industry, AMD announced it has entered into a definitive agreement to acquire Xilinx today. The deal is said to be an all-stock transaction valued at roughly $35 billion. The combined technology of the two vendors will create one of the largest high-performance computing companies.
AMD and Xilinx have complementary product portfolios as well as an overlap on customers. AMD has really been making headways in the past few years with the AMD EPYC CPUs and the support that they bring. AMD is also pushing into GPUs, FPGA, Adaptive SoCs and software with an aim at computing platforms for cloud, edge, and other IoT/end devices. Adding Xilinx portfolio under their wing broadens the product and customer base as well as pushing into growing segments from the data center to gaming, PCs, communications, automotive, industrial, aerospace and defense.
While the board of directors for both companies have unanimously approved the deal, the acquisition is still subject to approval by AMD and Xilinx shareholders, certain regulatory approvals and other customary closing conditions. The deal is expected to close by the end of 2021 and the companies will operate separately until then.
The transaction is expected to be immediately accretive to AMD margins, EPS and free cash flow generation and deliver industry-leading growth.
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