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AMD and Xilinx Merger Approved by Shareholders
08.04.2021 [07:00],
Alexey Razin

At the end of October, AMD and Xilinx announced that they would combine assets by swapping shares without using cash. In the capital structure of the combined company, AMD shareholders will receive 74%, while Xilinx shareholders will retain 26%. This week the deal was approved by the shareholders’ meetings of both companies, now it is up to the antitrust authorities of various countries to have the floor.

Image source: AMD

At the time of the announcement of the deal, it was reported that the capitalization of the combined company would reach $ 135 billion. Although the merger of the companies will not entail any monetary costs, the nominal amount of the transaction is estimated at $ 35 billion. After Xilinx acquisition, AMD could become the fourth largest chip developer. Lisa Su should lead the merged company, with current Xilinx CEO Victor Peng becoming president of AMD, in charge of the programmable matrix business, which Xilinx now specializes in.

Shareholders’ meetings of both companies were held on April 7, and now the decision on their upcoming merger has received support from the shareholders of AMD and Xilinx. AMD CEO Lisa Su said, «The Xilinx takeover marks the next step in making AMD the best strategic partner for many large tech companies as it makes it an industry leader with the strategic vision, talent and scale to drive future innovation.».

Xilinx CEO Victor Peng added, “The Xilinx team is one of the strongest in the industry and we are excited to join AMD. We share an innovative culture with this company, cooperation will allow us to accelerate business development in the data center segment and reach a wider range of customers as part of the combined company «. The deal has yet to be approved by the antimonopoly authorities of several countries, the parties still expect that the merger of the companies will be completed by the end of 2021.

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