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AMD Agrees to Buy Xilinx for $35 Billion in Latest Effort to Take on Rival Intel

Daniel Nenni

Admin
Staff member
Advanced Micro Devices said early Tuesday that it had reached an agreement to acquire semiconductor maker Xilinx for $35 billion.

The acquisition could be transformative for AMD (ticker: AMD), giving it more resources and new business lines to better compete with its larger rival Intel (INTC), especially with chips designed for data centers and other cloud computing applications.

The all-stock deal values Xilinx at roughly $143 a share, which represents a 25% premium to Monday’s closing price. It’s expected to close by the end of 2021. AMD said the deal would benefit the company’s margins, per-share earnings, and free cash flow generation. The company said it expects to achieve operational efficiencies of $300 million within 18 months of the deal closing.

“Our acquisition of Xilinx marks the next leg in our journey to establish AMD as the industry’s high performance computing leader and partner of choice for the largest and most important technology companies in the world,” AMD CEO Lisa Su said. Xilinx CEO Victor Peng would join AMD as president and two Xilinx directors would join the AMD board.


 

Arthur Hanson

Well-known member
AMD to buy Xillinx in 35 billion all stock deal. This is but the latest assault on Intel and is to be completed in 2021. It looks like Intel is under assault from all sides. It also looks like this will be another win for TSM.

 

Daniel Nenni

Admin
Staff member
Great acquisition by the way. Xilinx will take AMD up a few notches in all regards. TSMC is going to love this one!

The positive comments are coming in. Susquehanna analyst Christopher Rolland says:

AMD's $35B purchase of specialty semiconductor company Xilinx makes sense" since the deal complements AMD's existing CPU platform and expands its reach into data centers. AMD could gain more equal footing with Intel and Nvidia as XLNX's field programmable gate array capabilities could accelerate the growth of EPYC processors. The deal isn't expected to close until the end of CY21 but expects the standard amount of regulatory hurdles for a deal of this size.
 
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