AMD today announced the completion of its acquisition of Xilinx in an all-stock transaction. The acquisition, originally announced on October 27, 2020, creates the industry’s high-performance and adaptive computing leader with significantly expanded scale and the strongest portfolio of leadership computing, graphics and adaptive SoC products. AMD expects the acquisition to be accretive to non-GAAP margins, non-GAAP EPS and free cash flow generation in the first year.
“The acquisition of Xilinx brings together a highly complementary set of products, customers and markets combined with differentiated IP and world-class talent to create the industry’s high-performance and adaptive computing leader,” said AMD President and CEO Dr. Lisa Su. “Xilinx offers industry-leading FPGAs, adaptive SoCs, AI engines and software expertise that enable AMD to offer the strongest portfolio of high-performance and adaptive computing solutions in the industry 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 president of the newly formed Adaptive and Embedded Computing Group (AECG). AECG remains focused on driving leadership FPGA, Adaptive SoC and software roadmaps, now with the additional scale of the combined company and the ability to offer an expanded set of solutions including AMD CPUs and GPUs.
“The rapid expansion of connected devices and data-intensive applications with embedded AI are driving the growing demand for highly efficient and adaptive high-performance computing solutions,” said Victor Peng. “Bringing AMD and Xilinx together will accelerate our ability to define this new era of computing by providing the most comprehensive portfolio of adaptive computing platforms capable of powering a wide range of intelligent applications.”
Upon close, Xilinx stockholders received 1.7234 shares of AMD common stock and cash in lieu 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.
Questions & Answers
Why did AMD acquire Xilinx?
- Over the next decade, high-performance computing will increasingly be at the center of nearly every major trend shaping the future. While CPUs and GPUs will remain critical engines for those devices, in a world where algorithms are always advancing and new standards are continually emerging, we see demand growing for adaptive computing capabilities that will be critical to accelerate these emerging and evolving workloads.
- Combining AMD and Xilinx creates the industry’s high performance and adaptive computing leader.
- With the addition of Xilinx, AMD now has a significantly expanded leadership product portfolio, unmatched technology capabilities and software expertise, and increased scale that enhances our ability to power a wide range of intelligent applications from the data center to the edge to end devices.
- The new AMD will cover the most important markets and customers in the world with a combined TAM of approximately $135 billion in 2023.
How do you see the combination of AMD and Xilinx benefiting customers?
- AMD’s acquisition of Xilinx creates the industry’s high-performance and adaptive computing leader, combining a highly complementary set of products with differentiated IP and world-class talent.
- AMD now offers the industry’s strongest portfolio of high-performance and adaptive processor technologies to enable leadership computing platforms for cloud, edge and intelligent end devices.
- With more than 15,000 talented engineers, the significantly expanded R&D scale of the new company strengthens the long-term product and solutions roadmaps for both AMD and Xilinx customers.
How will AMD integrate Xilinx and who will lead the business?
- The Xilinx business will become the Adaptive and Embedded Computing Group (AECG), led by former Xilinx CEO Victor Peng.
- AECG remains focused on driving leadership FPGA, Adaptive SoC and software roadmaps, now with the additional scale of the combined company and the ability to offer an expanded set of platforms including high-performance CPUs and GPUs.
Are there any changes to either the Xilinx or AMD product portfolios or roadmaps on day one?
- No, there are no changes to the current product offerings or long-term product roadmaps on day one.
- Longer term, we believe the significantly expanded R&D scale of the new AMD expands our technology capabilities and strengthens our long-term product roadmaps.
Can I still purchase Xilinx products and will AMD offer the same support I received previously from Xilinx?
- Yes, customers will be able to purchase Xilinx products just as before and you should expect the same levels of service and support you have come to expect from Xilinx.
Will sales or support contacts change?
- There is no change. All contact details for sales and support will remain the same.
Will supplier or partner relationships change?
- There is no change. For more information, please visit our supplier FAQ here.
I am a prior shareholder of Xilinx. What happens to my Xilinx shares now that the company has been acquired by AMD?
- Xilinx shareholders were paid 1.7234 shares of AMD(and cash in lieu of any fractional shares of AMD) for each share owned of Xilinx as of the closing date of the acquisition. Former Xilinx shareholders may contact the Exchange Agent’s Shareholder Services Unit at 1-800-546-5141 or if calling from outside of the U.S. or Canada, Computershare at 781-575-2765 for share exchange information. Registered shareholders of AMD may contact Computershare Investor Services for account balances and more information.
Will AMD offer a dividend now that you have acquired Xilinx?
- As a growth-oriented company, our first priority is investing in the business and returning capital to shareholders through our share repurchase program. There are no plans to offer a dividend at this time.
To see the full presentation slides, click here.
