US-based multinational semiconductor producer, AMD is all set to conduct its Xilinx acquisition early next week for $35 billion, as the deal has obtained authorization from all required regulatory regimes. AMD is recognized for its CPUs and GPUs, while Xilinx is famous for a kind of semiconductor called Field Programmable Gate Arrays (FPGAs).
The AMD Xilinx Acquisition Deal is to be Valued Around $53 Billion
Unlike traditional semiconductors, FPGAs can be modified even after they have been deployed making them adaptable even though they are slower than GPUs or CPUs. The AMD Xilinx Acquisition deal has been in the making for almost 16 months now and the all-stock transaction was originally valued at $35 billion when it was first declared. However, since then AMD stock prices have risen by almost 51% to reach $125 per share.
The final price tag has, therefore, increased by $18 billion and is likely to be finalized at around $53 billion. Moreover, since the mandatory Hart-Scott-Rodino (HSR) Act waiting period has expired in the United States, both companies can now finalize the AMD Xilinx Acquisition deal around 14th February, which AMD announced in a press release.
The Companies will be Combining their Respective Product Portfolios
Furthermore, Chinese regulators gave their clearances last month, while regulators from the US reevaluated the AMD Xilinx Acquisition deal. Authorities in America did have multiple incentives to take further action but decided otherwise as the required waiting period ended on 9th February. Once the deal has been finalized, AMD and Xilinx will combine their respective product portfolios including CPUs, GPUs, FPGAs, and adaptive SoCs.
After the finalizing the deal, AMD will be able to expand and enhance its businesses in data centers, gaming, and PCs and across numerous industries such as communications, automotive, industrial, aerospace, and defense. Further details will be available once the deal finalizes, allowing AMD to give Intel and Nvidia tough competition in the data center market.