On October 27th, AMD and Xilinx jointly announced that they have reached a final agreement and agreed to AMD to acquire Xilinx in an all-stock transaction worth 35 billion US dollars.
AMD`s main business is CPU and GPU chips, while Xilinx is currently the world’s largest FPGA chip maker. The first one was Altera, which was acquired by Intel for $16.7 billion in 2015.
This transaction was not optimistic before, but AMD has really reached a conclusion. Although the price of 35 billion US dollars has set a new record, for AMD, it can better expand the business of the data center market and enhance its competitiveness.
According to the agreement, Xilinx shareholders can exchange one share of Xilinx common stock for approximately 1.7 shares of AMD common stock, valuing Xilinx at $143 per share, which is a premium of approximately 24.8% over its closing price of $114.55 on October 26. . After the merger, AMD shareholders will own 74% of the new company.
AMD President and CEO Dr. Lisa Su said: "The acquisition of Xilinx marks our next step in establishing AMD as the industry's leader in high-performance computing and the world's largest and most important technology company's preferred partner." She also pointed out: "This is indeed a compelling combination, which will create considerable value for all stakeholders including AMD and Xilinx shareholders, who will grow and move upward from the combined company's future. Benefit from the potential."
Xilinx was established in 1984 and is a provider of complete programmable logic solutions. It develops, manufactures and sells advanced integrated circuits, software design tools, and IP cores as predefined system-level functions. Customers use Xilinx and its partners' automated software tools and IP verification to program the device to complete specific logic operations.
At present, the global FPGA market is monopolized by Xilinx, Intel, Lattice and Microsemi. The data show that Xilinx currently occupies the leading position in the FPGA chip market, with a market share of about 42%.