What happened now? After announcing its intentions more than 15 months ago, AMD received approval to acquire Xilinx on Monday, Valentine’s Day. It will be the second largest deal in technology history.
Xilinx and AMD began trial at the end of October 2020. From the beginning, everything was simple; both Xilinx and AMD were publicly sold and AMD wanted to swap stock with Xilinx. A ratio of 1.7234 was established: for each share of Xilinx held by a shareholder, he would receive 1.7234 shares of the new AMD under whose umbrella Xilinx is located.
However, the completion of the deal took several months longer than anticipated, possibly due to intervention by the Chinese government. In addition, both the general nature of the technology industry and the specific circumstances of AMD and Xilinx have changed significantly since the announcement.
From October 2020 to last Thursday, AMD shares are up 67 percent and Xilinx shares are up 82 percent. However, shares of both companies fell 10% on Friday. announced completion of the acquisition.
Based on AMD’s opening price on Friday, AMD will buy each share of Xilinx for $217, which is also the exact price at which Xilinx shares opened yesterday morning. There have been some further declines today, but the company’s stock prices will continue to move in tandem.
Programmable board Xilinx for students.
The deal is valued at approximately $53 billion in current stock value, making it the second-largest acquisition in the tech industry. That’s $14 billion short of Dell’s acquisition of EMC in 2015, and the same distance ahead of the third largest acquisition of Avago Broadcom in the same 2015. Several weeks ago.
At the end of the deal, current AMD shareholders will own about 74 percent of the “new” AMD, while current Xilinx shareholders will own the remaining 26 percent. Accordingly, at least two Xilinx directors will serve on AMD’s board of directors, and Xilinx CEO Victor Peng will become president of the Xilinx division.
But this is only a business side – for AMD, the acquisition of Xilinx is no less important than the acquisition of ATI in 2006. invention of the FPGA (field-programmable gate array).
Today, Xilinx produces products that are in many ways similar to AMD products, which makes their unification quite logical. For example, both companies make accelerators (such as GPUs) for data analytics and artificial intelligence. While AMD is targeting the upper end of the market with high performance products, Xilinx is producing cheaper, power efficient and more flexible alternatives.
The fruits of this acquisition may take a few years to bear fruit, but they are sure to be sweet.
Credit: www.techspot.com /