The deal concludes one week after rival NVIDIA’s multibillion-dollar attempt to buy Arm falls through.
Chipmaker AMD stated today in a press release that it has completed its acquisition of Xilinx. AMD originally announced the all-stock transaction in October 2020 with an approximate value of $35 billion. Today, that value has risen alongside AMD stock to about $50 billion, according to Reuters.
The acquisition will join together Xilinx’s portfolio of field-programmable gate array (FPGA) and system on chip (SoC) technology with AMD’s central processing unit (CPU) and graphics processing unit (GPU) products.
“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,” said AMD President and CEO Lisa Su in the press release. “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 will become AMD’s new Adaptive and Embedded Computing Group (AECG), and it will remain under the leadership of former Xilinx CEO Victor Peng. In a Q&A about the acquisition, AMD stated that there will be no immediate changes to Xilinx’s current product offerings, and all sales and support channels will remain the same.
As the deal closed, Xilinx shareholders traded in each share for 1.7234 shares of AMD common stock and cash in lieu of any fractional shares. In its Q&A, AMD emphasized it will not offer a dividend now that the Xilinx acquisition is complete.
The timing of the deal closure can’t help but recall last week’s announcement from AMD competitor NVIDIA, in which the semiconductor company revealed it had terminated its plan to acquire chip designer Arm from SoftBank Group due to regulatory obstacles. Before falling through, that deal was valued at an estimated $75 billion.
