AMD (AMD) – Get Report and Xilinx (XLNX) – Get Report are eager to work together not just on new server platforms, but also on joint offerings for 5G base stations, cars and much else, its CEOs stress.
Three weeks after The Wall Street Journal first reported that a potential $30 billion-plus deal was being discussed, AMD announced on Tuesday morning that it’s buying top FPGA developer Xilinx in an all-stock deal that values Xilinx at more than $33 billion based on AMD’s current trading price.
The companies aim to close the deal by the end of 2021, and to generate $300 million worth of annual cost savings within 18 months of closing. AMD shareholders stand to own 74% of the post-merger company, and Xilinx shareholders the other 26%.
In tandem with the announcement, AMD posted its Q3 report, which was originally scheduled to arrive on