San Jose, California: AMD will acquire Xilinx for a total price of $35 billion, and this transaction will merge two Silicon Valley chip makers.
The deal announced on Tuesday made AMD what it wanted. The competition with Intel is more intense.
Xilinx shareholders will receive 1.7234 AMD shares for each Xilinx stock held by Xilinx shareholders, or approximately $143 per share.
AMD shareholders will own approximately 74% of the combined company, and Xilinx shareholders will own approximately 26%.
This transaction will provide AMD with a strong portfolio of high-performance processor technology, combining CPU, GPU, FPGA, adaptive SoC and deep software expertise to provide a leading computing platform for cloud, edge and terminal devices.
Xilinx CEO Victor Peng said in a prepared statement: “Joining with AMD will help accelerate the growth of our data center business and enable us to seek a wider customer base in more markets.”
AMD CEO Dr. Lisha Su will lead the combined company as CEO. Peng will join AMD as president, responsible for Xilinx’s business and strategic growth plans. After the transaction is completed, at least two Xilinx directors will join AMD’s board of directors.
The transaction is expected to be completed before the end of next year. It still needs the approval of the shareholders of the two companies.
Xilinx’s stock fell nearly 2% before the opening on Tuesday, while AMD’s stock rose slightly.