AMD acquires Xilinx in a $49B acquisition to bring advancements in efficiency and power for consumers starting in the first year
AMD anticipates the purchase of Xilinx to be accretive to non-GAAP margins, non-GAAP EPS, and free cash flow generation within the first year. — Dr. Lisa Su, President and CEO, AMD — Xilinx (@XilinxInc) February 14, 2022 Victor Peng, the former CEO of Xilinx, will join AMD as president of the newly created Adaptive and Embedded Computing Group (AECG). AECG will continue to focus on remaining the industry leader for FPGA, Adaptive SoC, and software roadmaps, currently with the different scale of Xilinx and the capability to deliver a comprehensive collection of solutions, including AMD CPUs and GPUs. At the close of the acquisition, Xilinx stockholders 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. Xilinx common stock will no longer be listed for trading on the NASDAQ stock market. — Victor Peng Benefits of the acquisition of Xilinx by AMD:
AMD will deliver differentiated solutions for cloud, edge, and intelligent end devices while taking a leadership position accelerating a diverse set of emerging workloads, from AI to intelligent networking and software-defined infrastructure. Provides significantly expanded R&D scale further to strengthen AMD’s technical capabilities and long-term product roadmaps. Expands AMD capabilities in advanced technology development, including leadership, die stacking and packaging technology, chiplet and interconnect technology, AI and domain-specific architectures, and best-of-breed software platforms. AMD provides solutions for the world’s most important markets and customers, with a combined TAM of approximately $135 billion in 2023. Xilinx’s deep strategic partnerships across wired and wireless communications, automotive, industrial and test, aerospace and defense, and measurement and emulation markets complement AMD partnerships in PC and data center markets. Xilinx further strengthens AMD financial model, supplying a diverse set of end markets based on long product cycles across multiple, high-margin businesses. The transaction is expected to be accretive to non-GAAP gross and operating margins, non-GAAP EPS, and free cash flow generation in the first year.
Patrick Moorhead, tech industry analyst by ARInsights & Apollo Research and Owner, Founder, CEO & Chief Analyst at Moor Insights & Strategy, shares insights on his Twitter about this new $49B acquisition.
— Patrick Moorhead going to #MWC22 (@PatrickMoorhead) February 14, 2022 Source: AMD, Patrick Moorhead
