The transaction is expected to create a high-performance and adaptive computing major with an enterprise value of around $135bn
AMD closes the previously announced acquisition of Xilinx. (Credit: Raysonho @ Open Grid Scheduler / Grid Engine / Wikipedia.org)
Advanced Micro Devices (AMD) has wrapped up its previously announced $35bn acquisition of rival US-based semiconductor company Xilinx.
Announced in October 2020, the deal is expected to create a high-performance and adaptive computing major with an enterprise value of nearly $135bn.
The all-stock transaction cleared its last major regulatory hurdle in January 2021 following the conditional approval from China’s State Administration for Market Regulation (SAMR).
Xilinx is mainly engaged in supplying field programmable gate arrays (FPGAs), while AMD provides central processing units (CPUs) based on the x86 instruction set, graphics processing units (GPUs), and semi-custom processors for the gaming market.
The combined company will have considerably expanded scale and a portfolio of computing, graphics, and adaptive System on a Chip (SoC) products, said AMD.
According to AMD, the acquisition is likely to be accretive to non-GAAP margins, non-GAAP EPS as well as free cash flow generation in the first year.
AMD’s shareholders will hold a stake of nearly 74% in the combined firm, while Xilinx’s stockholders will own the remaining stake of 26%.
AMD president and CEO Lisa Su said: “The acquisition of Xilinx brings together a highly complementary set of products, customers and markets combined with differentiated IP and world-class talent to create the industry’s high-performance and adaptive computing leader.
“Xilinx offers industry-leading FPGAs, adaptive SoCs, AI engines and software expertise that enable AMD to offer the strongest portfolio of high-performance and adaptive computing solutions in the industry and capture a larger share of the approximately $135 billion market opportunity we see across cloud, edge and intelligent devices.”
Xilinx’ former CEO Victor Peng will become the president of AMD’s newly created Adaptive and Embedded Computing Group (AECG).
AMD said that AECG will be focused on maintaining the company’s position in FPGA, adaptive SoC, and software roadmaps.
Peng said: “The rapid expansion of connected devices and data-intensive applications with embedded AI are driving the growing demand for highly efficient and adaptive high-performance computing solutions.
“Bringing AMD and Xilinx together will accelerate our ability to define this new era of computing by providing the most comprehensive portfolio of adaptive computing platforms capable of powering a wide range of intelligent applications.”