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AMD in $35 Billion All-Stock Acquisition of Xilinx
After a couple of weeks of rumor, as well as a couple of years of hearsay, AMD has gone feet first into a full acquisition of FPGA manufacturer Xilinx. The deal involves an all-stock transaction, leveraging AMD's sizeable share price in order to enable an equivalent $143 per Xilinx share – current AMD stockholders will still own 74% of the combined company, while Xilinx stockholders will own 26%. The combined $135 billion entity will total 13000 engineers, and expand AMD's total addressable market to $110 Billion. It is believed that the key reasons for the acquisition lie in Xilinx's adaptive computing solutions for the data center market.
[...] As part of the acquisition, Victor Peng will join AMD as president responsible for the Xilinx business, and at least two Xilinx directors will join the AMD Board of Directors upon closing.
Part of the enablement of the acquisition is AMD leveraging its market capitalization of ~$100 billion, and a lot of the industry will draw parallels of Intel's acquisition of FPGA-manufacturer Altera in December 2015 for $16.7 billion. The high-performance FPGA markets, as well as SmartNICs, adaptive SoCs, and other controllable logic, reside naturally in the data center markets more than most other markets. With AMD's recent growth in the enterprise space with its Zen-based EPYC processor lines, a natural evolution one might conclude would be synergizing high-performance compute with adaptable logic under one roof, which is precisely the conclusion that Intel also came to several years ago. AMD reported last quarter that it had broken above the 10% market share in Enterprise with its EPYC product lines, and today's earnings call is also expected to see growth. AMD is already reporting revenue up +56% year on year company-wide, with +116% in the Enterprise, Embedded, and Semi-Custom markets.
Also at The Register, Phoronix, and Wccftech.
Previously: AMD Negotiating to Acquire Xilinx
(Score: 1, Interesting) by Anonymous Coward on Tuesday October 27 2020, @11:39PM
or 2 goods make a great?
It's not yet clear if Intel buying Altera was a good or bad idea.
Now we have done the cpu+fpag merger twice.
(No doubt good for m&a folks and execs, but questionable so far if it added or subtracted from either company's ability to make great stuff.)
AMD, I guess has to follow suit because this year that seems to be table stakes for being a computing center cpu provider.
Next year could confirm this as a good move.
or show that neither company can find value in the meld.
Best case, we at least still have the four great product lines un-broken, and they figure out something where inside sharing helps.
Worst case, the cpu or fpga side gets control and breaks their new sibling.