AMD, a US-based multinational semiconductor manufacturer, is set to complete its $35 billion acquisition of Xilinx early next week, after receiving approval from all necessary regulatory authorities.
AMD is well-known for its CPUs and GPUs, whereas Xilinx is well-known for Field Programmable Gate Arrays (FPGAs). FPGAs, unlike traditional semiconductors, can be modified even after they have been deployed, making them versatile despite being slower than GPUs or CPUs.
The transaction has been in the works for nearly 16 months, and the all-stock transaction was initially valued at $35 billion when it was announced. However, AMD stock prices have risen by nearly 51% since then, reaching $125 per share.
As a result, the final cost has risen by $18 billion and is now expected to be around $53 billion.
Furthermore, because the mandatory Hart-Scott-Rodino (HSR) Act waiting period in the United States has expired, both companies can now finalize the deal around February 14th, as AMD announced in a press release.
Chinese regulators approved the deal last month, while US regulators reviewed it. Authorities in America had numerous incentives to take further action, but decided against it because the required waiting period expired on February 9th.
AMD and Xilinx will combine their respective product portfolios, which will include CPUs, GPUs, FPGAs, and adaptive SoCs, once the deal is completed.
AMD will be able to expand and improve its businesses in data centers, gaming, and PCs, as well as in other industries such as communications, automotive, industrial, aerospace, and defence, as a result of the acquisition.
More information will be available once the deal is finalized, allowing AMD to compete with Intel and Nvidia in the data center market.
To read our blog on “Samsung has once again postponed the release of its highly anticipated Exynos x AMD-powered mobile chip,” click here.
