American AMD agreed to buy its competitor and one of the largest programmable chip makers Xilinx.
One of the largest processor manufacturers, the American AMD, has closed a purchase agreement with its competitor Xilinx and will acquire it for $ 35 billion, AMD said in a statement.
The deal will be paid in full in shares: Xilinx shareholders will receive 1.7234 shares of AMD for each share of their company. Thus, after the deal is closed, AMD will hold 74% of the combined company’s shares, and Xilinx’s shareholders – 26%.
The sale of Xilinx will only occur after the approval of shareholders and regulations. AMD expects the deal to close by the end of 2021.
The combined company will be headed by the current head of AMD, Lisa Su. Xilinx CEO Victor Peng will join AMD as President of Xilinx’s Strategic Growth Initiatives and Business.
As noted by The New York Times, the business could become one of the largest in the industry.
It is worth remembering that in September this year another great deal was announced in the microcircuit market. American company Nvidia plans to buy British chip maker Arm Holdings for more than $ 40 billion.