AMD has agreed to acquire Xilinx in an all-stock transaction valued at $35 billion, according to the company’s press release. The acquisition expands AMD’s product portfolio and customer set in diverse growth markets where Xilinx is established. The transaction is accretive to AMD margins, EPS, and free cash flow generation and delivers industry-leading growth. 

  • AMD-Xilinx will bring together two industry leaders having complementary product portfolios and customers. 
  • AMD aims to become a high-performance computing leader and create value for both companies’ shareholders.
  • Xilinx expects to accelerate growth in the data center business and pursue a broader customer base in more markets.
  • With a combined team of 13,000 engineers and over $2.7 billion of research and development, AMD will have additional talent and scale to deliver domain-specific solutions and a stronger set of products.

AMD and Xilinx stocks are gaining on the merger announcement. AMD: NASDAQ is up on premarket 2.74%, XLNX: NASDAQ is up on premarket 17.46%