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AMD buying Xilinx in all-stock deal valued at $35B

AMD is buying  Xilinx for $35 billion in an all-stock deal that will combine the two Silicon Valley chip makers

Via AP news wire
Tuesday 27 October 2020 11:37 GMT
AMD Xilinx
AMD Xilinx (AP2011)

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AMD is buying Xilinx for $35 billion in an all-stock deal that will combine the two Silicon Valley chip makers.

The deal announced Tuesday puts AMD in a place it wants to be; competing more fiercely with Intel.

Xilinx stockholders will receive 1.7234 shares of AMD stock for each Xilinx share they hold, or approximately $143 per share of Xilinx stock.

AMD stockholders will own about 74% of the combined company with Xilinx stockholders owning approximately 26%.

The transaction will give AMD a strong portfolio of high performance processor technologies, combining CPUs, GPUs, FPGAs, Adaptive SoCs and deep software expertise to enable leadership computing platforms for cloud, edge and end devices.

“Joining together with AMD will help accelerate growth in our data center business and enable us to pursue a broader customer base across more markets,” Xilinx CEO Victor Peng said in a prepared statement.

AMD CEO Dr. Lisa Su will lead the combined company as CEO. Peng will join AMD as president, responsible for the Xilinx business and strategic growth initiatives. At least two Xilinx directors will join the AMD's board once the transaction is complete.

The deal is expected to close by the end of next year. It still needs approval from shareholders of both companies.

Shares of Xilinx fell nearly 2% before the market open on Tuesday, while AMD's stock rose slightly.

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