- General
- October 27, 2020
- 4 minutes read
AMD Snaps Up Xilinx
Lisa Su, CEO, AMD.Photo credit: Genevieve Martin, OLCF at ORNL, licensed under CC BY 2.0 Chip company AMD has announced that it’s reached…
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| Lisa Su, CEO, AMD. Photo credit: Genevieve Martin, OLCF at ORNL, licensed under CC BY 2.0 |
Chip company AMD has announced that it’s reached a deal to acquire rival Xilinx in an all-stock deal valued at $35 billion, corroborating a recent report of the company looking to do so. The $35 billion price represents a 25% premium to Xilinx’s current (as of writing) market capitalization of about $28 billion. A merger between both companies will tie-up two powerhouses from the chip industry and create an entity with an enterprise value of approximately $135 billion.
Under the terms of the acquisition, Xilinx stockholders will receive 1.7234 shares of AMD common stock for each share of Xilinx common stock they hold. Upon completion of the acquisition, AMD’s chief executive Lisa Su will lead the combined company while Xilinx’s chief executive Victor Peng will take on the role of President responsible for the Xilinx business.
Two Xilinx board members will be given board seats at AMD under the terms of the acquisition. The acquisition is expected to close in the coming year, still subject to a vote from both companies’ shareholders.
AMD’s purchase of Xilinx comes just on the heels of rival Nvidia clinching a $40 billion deal to acquire British chip company Arm. It’s such that Nvidia’s acquisition marks the most valuable in the chip industry’s history while that of AMD takes second-place.
