AMD (AMD) Closes $49 Billion Acquisition Of Xilinx

By Amit Chowdhry ● Feb 14, 2022
  • AMD (NASDAQ: AMD) has announced the completion of its acquisition of Xilinx in an all-stock transaction. These are the details.

AMD (NASDAQ: AMD) has announced the completion of its acquisition of Xilinx in an all-stock transaction. The acquisition — originally announced on October 27, 2020 — creates the industry’s high-performance and adaptive computing leader with significantly expanded scale and the strongest portfolio of leadership computing, graphics, and adaptive SoC products. ANd AMD expects the acquisition to be accretive to non-GAAP margins, non-GAAP EPS, and free cash flow generation in the first year.

Former Xilinx CEO Victor Peng will join AMD as president of the newly formed Adaptive and Embedded Computing Group (AECG). And AECG remains focused on driving leadership FPGA, Adaptive SoC, and software roadmaps, now with the additional scale of the combined company and the ability to offer an expanded set of solutions including AMD CPUs and GPUs.

Upon closing, Xilinx stockholders received 1.7234 shares of AMD common stock and cash in lieu of any fractional shares of AMD common stock for each share of Xilinx common stock. Xilinx common stock will no longer be listed for trading on the NASDAQ stock market.

Board Of Directors Announces New Appointments

AMD announced that the AMD board has elected President and CEO Dr. Lisa Su as the chair of the board and John E. Caldwell as the lead independent director. Caldwell had joined the AMD board in 2006 and has served as chair since May 2016. Plus AMD also announced that former Xilinx board members Jon Olson and Elizabeth Vanderslice have joined the AMD board in conjunction with the close of AMD’s acquisition of Xilinx.

Olson has over 30 years of experience in senior roles of financial responsibility at multiple semiconductor companies. He had joined the Xilinx board in May 2020 after previously serving as Xilinx chief financial officer from June 2005 until his retirement in July 2016. Plus Olson also currently serves on the boards of Kulicke & Soffa, a supplier of semiconductor and electronic assembly solutions, and Rocket Lab USA, Inc., a provider of launch and space systems.

Vanderslice has extensive technology, banking, and management experience and joined the Xilinx board in December 2000. And she has served as a partner at Trewstar Corporate Board Services since 2019 and was previously general manager of Lycos through its acquisition. Between 1996 to 1999, Vanderslice was CEO of Wired Digital, Inc., the online-media division of Wired Ventures, Inc., and a member of the boards of both Wired Digital, Inc. and Wired Ventures, Inc. She also serves as a Trustee of Boston College.

KEY QUOTES:

“The acquisition of Xilinx brings together a highly complementary set of products, customers and markets combined with differentiated IP and world-class talent to create the industry’s high-performance and adaptive computing leader. Xilinx offers industry-leading FPGAs, adaptive SoCs, AI engines and software expertise that enable AMD to offer the strongest portfolio of high-performance and adaptive computing solutions in the industry and capture a larger share of the approximately $135 billion market opportunity we see across cloud, edge and intelligent devices.”

“I’m honored to be named board chair and continue the work to make AMD the industry’s high-performance and adaptive computing leader. On behalf of the entire board of directors, I would like to thank John for his outstanding leadership as board chair over the past six years and for his continued contributions moving forward.”

— AMD President and CEO Dr. Lisa Su

“The rapid expansion of connected devices and data-intensive applications with embedded AI are driving the growing demand for highly efficient and adaptive high-performance computing solutions. Bringing AMD and Xilinx together will accelerate our ability to define this new era of computing by providing the most comprehensive portfolio of adaptive computing platforms capable of powering a wide range of intelligent applications.”

— Victor Peng

“Under Lisa’s leadership, AMD has successfully executed a multi-year strategy that has significantly re-shaped the company’s product portfolio and customer set and delivered industry-leading growth. As CEO and chair, Lisa will now have an ability to drive an even sharper focus for AMD and create greater shareholder value. I am also excited to welcome Jon and Elizabeth to the board as a part of the successful completion of the Xilinx acquisition. Their depth of industry knowledge and expertise are valuable additions to the board that will help AMD continue its strong growth.”

— John E. Caldwell