AMD agreed to acquire Xilinx for US$35 billion, making it the world’s second largest merger and acquisition this year

   Original title: AMD agreed to acquire Xilinx for US$35 billion, making it the world’s second-largest merger and acquisition this year

  Reporter | Peng Xin

   News on the evening of October 27th, chip maker AMD agreed to acquire Xilinx in a $35 billion all-stock transaction. AMD said the transaction enhances its data center products line-up.

   According to the agreement, Xilinx shareholders can exchange one share of Xilinx common stock for approximately 1.7 shares of AMD common stock, which is valued at $143 per share for Xilinx , Compared with its closing price of 114.55 US dollars on October 26, a premium of about 24.8%. AMD shareholders will own about 74% of the combined company, and Xilinx shareholders will own the remaining 26%.

   At the same time, AMD CEO Su Zifeng will serve as CEO of the combined company. Xilinx CEO Victor Peng will serve as president and will be responsible for Xilinx’s business and strategic growth. The two companies expect this transaction to save $300 million in costs. The transaction is expected to be completed by the end of 2021, and the number of engineers will be approximately 13,000 in the future. The transaction still needs to be approved by major market regulators.

   Xilinx is the inventor of field programmable gate array chips and also has the largest market share of FPGA chips. Its advantage lies in flexibility. Take 5G base station applications as an example. FPGA chips can be reprogrammed after antennas are installed. Manufacturers can enable these chips to make antennas, and wireless operators can reprogram them to adapt to any 5G standards adopted in the future. In the field of FPGA, Intel is Xilinx’s biggest competitor.

   The acquisition will also become the second largest M&A transaction in the world this year, second only to Nvidia’s proposal to acquire Arm for US$40 billion last month. This move is seen as AMD is actively expanding the data center and edge computing market. The completion of this merger is expected to intensify the competition between AMD and Intel in the data center chip market.

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