US-based multinational semiconductor manufacturer, AMD is all set to complete the acquisition of Xilinx for $35 billion early next week, as the deal has received approval from all necessary regulatory bodies.
AMD is known for its CPUs and GPUs while Xilinx is known for a type of semiconductor called Field Programmable Gate Arrays (FPGAs). Unlike traditional semiconductors, FPGAs can be modified even after they are implemented, making them versatile even though they are slower than GPUs or CPUs.
The deal is now nearly 16 months in the making, and the entire stock transaction was originally valued at $35 billion when it was first announced. Since then, however, AMD stock prices have risen nearly 51% to $125 a share. So the final price tag has increased by $18 billion and will likely round up to about $53 billion.
Additionally, since the mandatory Hart-Scott-Rodino (HSR) Act waiting period in the United States has passed, both companies can now close the deal around February 14, which AMD announced in a press release.
Chinese regulators gave their approval last month, while US regulators assessed the deal. Authorities in America had multiple incentives to take further action, but decided otherwise because the required waiting period ended at 9e February.
Once the deal is completed, AMD and Xilinx will combine their respective product portfolios, including CPUs, GPUs, FPGAs and adaptive SoCs.
Following the acquisition, AMD will be able to expand and enhance its business in data center, gaming and PC and in many sectors such as communications, automotive, industrial, aerospace and defense.
Further details will be available once the deal closes, allowing AMD to offer Intel and Nvidia tough competition in the data center market.
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