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takyon writes:

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

Original Submission

1. "takyon" - https://soylentnews.org/~takyon/
2. "AMD in $35 Billion All-Stock Acquisition of Xilinx" - https://www.anandtech.com/show/16196/amd-in-35-billion-allstock-acquisition-of-xilinx
3. "The Register" - https://www.theregister.com/2020/10/27/amd_xilinx_results/
4. "Phoronix" - https://www.phoronix.com/scan.php?page=news_item&px=AMD-Acquiring-Xilinx
5. "Wccftech" - https://wccftech.com/amd-xilinx-acquisition-data-center-grow/
6. "AMD Negotiating to Acquire Xilinx" - https://soylentnews.org/article.pl?sid=20/10/09/1847213
7. "Original Submission" - https://soylentnews.org/submit.pl?op=viewsub&subid=44944

printed from SoylentNews, AMD Acquires FPGA Manufacturer Xilinx for $35 Billion in Stock on 2024-04-19 09:53:55