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AMD attempting to merge with semiconductor company Xilinx

Autore: Matteo Marletto, M&A Senior Associate

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We have already discussed about a possible merger between AMD and Xilinx in a previous article; after a period of doubts on October 27th AMD finally announced they have entered into a definitive agreement to acquire Xilinx in an all-stock transaction valued at $35 billion. The merger will create the industry’s leading high performance computing company, considerably expanding AMD’s product portfolio and customer set across markets where Xilinx is an established leader. Now AMD will offer the industry’s strongest range of high-performance processor, combining CPUs, GPUs, Adaptive SoCs and deep software expertise to enable leadership computing platforms for cloud, edge and end devices. With a combined team of over 12000 engineers and over $2.7 billion of annual R&D investment, AMD will have additional possibilities to deliver an even stronger set of products to the market.

Xilinx shareholders will receive a fixed exchange ratio of 1.7234 shares of AMD for each share of Xilinx they hold at the closing of the transaction. Based on the exchange ratio, this represents approximately $143 per share of Xilinx common stock. AMD expects to achieve operational efficiencies of approximately $300 million within the first 18 months, primarily based on the combined value in costs of goods sold, shared infrastructure and through streamlining common areas. The transaction has been approved by the two companies' Boards of Directors. The transaction is currently expected to close by the end of 2021. Until then the businesses remain separate and independent. Dr. Lisa Su will lead as CEO of the combined businesses. Xilinx CEO, Victor Peng, will become president responsible for the Xilinx business and strategic growth initiatives. In addition, at least two Xilinx directors will join the AMD Board of Directors.


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