On the 27th, AMD and Xilinx jointly announced that they have reached a definitive agreement to agree to AMD’s acquisition of Xilinx in an all-stock transaction valued at $35 billion.
after the news is published. Xilinx US stocks rose more than 10% before the market, and AMD fell nearly 6% before the market.
AMD’s main business is CPU and GPU chips, while Xilinx is currently the world’s largest FPGA chip maker. The previous first was Altera, which was acquired by Intel for $16.7 billion in 2015.
This transaction was not optimistic before, but AMD has really negotiated it. Although the price of 35 billion US dollars has set a new record, for AMD, it can better expand its business in the data center market and improve its competitiveness.
According to the agreement, Xilinx shareholders can exchange one share of Xilinx common stock for about 1.7 shares of AMD common stock, valuing Xilinx at $143 per share, which represents a premium of about 24.8% to its closing price of $114.55 on October 26. . After the merger, AMD shareholders will own 74% of the new company.
“The acquisition of Xilinx marks the next step in our establishment of AMD as the industry leader in high-performance computing and the partner of choice for the world’s largest and most important technology companies,” said AMD President and CEO Dr. Lisa Su. She also noted, “This is truly a compelling combination that will create substantial value for all stakeholders, including AMD and Xilinx shareholders, who will benefit from future growth and upside from the combined company. benefit from potential.”
According to public information, Xilinx, founded in 1984, is a supplier 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 checking to program devices to perform specific logic operations.
At present, the global FPGA market is monopolized by the four giants Xilinx, Intel, Lattice and Microsemi. According to data, Xilinx currently occupies a dominant position in the FPGA chip market, with a market share of about 42%.