AMD in $35 billion all-share bid to acquire Xilinx

AMD in $35 billion all-share bid to acquire Xilinx

Business news |
By Jean-Pierre Joosting

Advanced Micro Devices (AMD) announced the deal to acquire Xilinx alongside their 3Q20 financial results. It would mirror Intel’s acquisition of Altera of several years ago and will help AMD compete in the data center. AMD, for many years the junior x86 processor vendor, has in recent years started to push Intel on multiple fronts, from notebook and laptop computers up to servers. The acquisition of Xilinx will increase AMD’s enterprise value to approximately $135 billion, the company said.

The capabilities of an expanded AMD in CPUs and GPUs allied with FPGAs and software capabilities will help AMD compete with Nvidia-ARM if that deal should go through. It will also help the company diversify into other sectors including communications, automotive, industrial, aerospace and defense.

Under the terms of the proposed deal Lisa Su would continue to lead an expanded AMD as CEO while Victor Peng, currently CEO of Xilinx, would become president of AMD responsible for Xilinx business. The deal has been approved by both boards of directors but depends on shareholder approval and other regulatory approvals. The deal would be expected to close before the end of 2021.

AMD also announced strong 3Q20 results. Revenue was $2.8 billion, up 45 percent sequentially and up 56 percent compared with 3Q19. AMD made a net profit of $390 million. The company expects revenue of $3.0 billion plus or minus $100 million in the fourth quarter. As a result it expects its 2020 revenue to be up 41 percent compared with 2019.

If you enjoyed this article, you will like the following ones: don't miss them by subscribing to :    eeNews on Google News


Linked Articles