LONDON (ShareCast) - (Sharecast News) - Advanced Micro Devices has agreed to buy rival chip maker Xilinx in an all-share transaction valued at $35bn.
AMD said on Tuesday that the combination will create "the industry's leading high performance computing company, significantly expanding the breadth of AMD's product portfolio and customer set across diverse growth markets where Xilinx is an established leader".

The deal is expected to be immediately accretive to AMD margins, earnings per share and free cash flow generation.

AMD president and chief executive officer Lisa Su said: "Our acquisition of Xilinx marks the next leg in our journey to establish AMD as the industry's high performance computing leader and partner of choice for the largest and most important technology companies in the world.

"This is truly a compelling combination that will create significant value for all stakeholders, including AMD and Xilinx shareholders who will benefit from the future growth and upside potential of the combined company. The Xilinx team is one of the strongest in the industry and we are thrilled to welcome them to the AMD family. By combining our world-class engineering teams and deep domain expertise, we will create an industry leader with the vision, talent and scale to define the future of high performance computing."

Under the terms of the agreement, Xilinx shareholders will receive a fixed exchange ratio of 1.7234 shares of AMD common stock for each of their shares.

Post-closing, current AMD stockholders will own around 74% of the combined company on a fully-diluted basis, while Xilinx stockholders will own the rest.

The deal is expected to close by the end of 2021.

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