AMD announced the completion of its all-stock acquisition of Xilinx. The purchase was first advised on October 27, 2020, to create the industry’s high-performance and adaptive computing leader with greatly expanded scale and the most robust portfolio of leading computing, graphics, and adaptable SoC solutions. AMD anticipates that the purchase will be accretive to non-GAAP margins, non-GAAP EPS, and free cash flow generation in the first year.
“The purchase of Xilinx brings together a highly complementary collection of technologies, customers, and markets, as well as distinctive IP and world-class personnel, to establish the industry’s high-performance and adaptive computing leader,” said AMD President and CEO Dr. Lisa Su. “Xilinx provides industry-leading FPGAs, adaptive SoCs, AI engines, and software expertise, enabling AMD to offer the industry’s strongest portfolio of high-performance and adaptive computing solutions and capture a larger share of the approximately $135 billion market opportunity we see across cloud, edge, and intelligent devices.”
Former Xilinx CEO Victor Peng will join AMD as head of the newly established Adaptive and Embedded Computing Group (AECG). AECG will continue to drive leading FPGA, adaptive SoC, and software roadmaps, now with the added size of the merged business and the flexibility to provide a broader set of products, including AMD CPUs and GPUs.
“The fast proliferation of connected devices and data-intensive applications with embedded AI is driving the rising demand for highly efficient and adaptable high-performance computing solutions,” said Victor Peng. “By bringing AMD and Xilinx together, we will be able to define this new age of computing faster by delivering the complete portfolio of adaptive computing platforms capable of powering a wide range of intelligent applications.”
Upon completion, Xilinx investors received 1.7234 shares of AMD common stock and cash in place of any fractional shares of AMD common stock for each share of Xilinx common stock. The NASDAQ will no longer offer Xilinx common stock for trading.