In one of the largest tech deals, chip maker AMD on Tuesday acquired rival company Xilinx in an all-stock transaction valued at $35 billion.
Xilinx is the top provider of adaptive computing solutions and the combined $135 billion entity will have nearly 13,000 engineers and expand AMD’s total addressable market to $110 billion.
The combination will create the industry’s leading high performance computing company, significantly expanding the breadth of AMD’s product portfolio and customer set across diverse growth markets where Xilinx is an established leader, AMD said in a statement.
“Our acquisition of Xilinx marks the next leg in our journey to establish AMD as the industry’s high performance computing leader and partner of choice for the largest and most important technology companies in the world,” said AMD President and CEO Dr Lisa Su.
“By combining our world-class engineering teams and deep domain expertise, we will create an industry leader with the vision, talent and scale to define the future of high performance computing.”
AMD will offer the industry’s strongest portfolio of high performance processor technologies, combining CPUs, GPUs, FPGAs, Adaptive SoCs and deep software expertise to enable leadership computing platforms for cloud, edge and end devices.
Together, the combined company will capitalise on opportunities spanning some of the industry’s most important growth segments from the data center to gaming, PCs, communications, automotive, industrial, aerospace and defense.
“Our leading FPGAs, adaptive SoCs, accelerator and SmartNIC solutions enable innovation from the cloud, to the edge and end devices,” said Victor Peng, Xilinx president and CEO.
“Joining together with AMD will help accelerate growth in our data center business and enable us to pursue a broader customer base across more markets.”
With over $2.7 billion of annual R&D investment, AMD will have additional talent and scale to deliver an even stronger set of products and domain-specific solutions.
The transaction is currently expected to close by the end of calendar year 2021.
Meanwhile, AMD on Tuesday announced record revenue for the third quarter of 2020 of $2.80 billion (up 56 per cent year-over-year and 45 per cent quarter-over-quarter), operating income of $449 million, net income of $390 million and diluted earnings per share of $0.32.
“Our business accelerated in the third quarter as strong demand for our PC, gaming and data center products drove record quarterly revenue,” said Lisa Su.
“We reported our fourth straight quarter with greater than 25 percent year-over-year revenue growth, highlighting our significant customer momentum,” Su added.
Net income was $390 million compared to $120 million a year ago and $157 million in the prior quarter.
“We are well positioned to continue delivering best-in-class growth as we further extend our leadership product portfolio with the launches of our next generation Ryzen, Radeon and EPYC processors,” Su informed.
Computing and Graphics segment revenue was $1.67 billion, up 31 per cent year-over-year and 22 per cent quarter-over-quarter.
–IANS
