Xilinx stock jumps on $35 billion acquisition deal

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Xilinx (NASDAQ: XLNX) share jumped over 15% on Tuesday after Semiconductor designer Advanced Micro Devices (NASDAQ: AMD) announced it will buy FPGA maker Xilinx in a $35 billion all-stock deal, while AMD's stock slipped about 4%. The acquisition is expected to close by the end of 2021, after which AMD stockholders will own about 74% of the company, with Xilinx shareholders owning the remaining 26%.

The combined company will have a complement of 13,000 talented engineers and over $2.7 billion of annual R&D investment. Xilinx CEO Victor Peng will be joining AMD in a presidential capacity responsible for the Xilinx business and two Xilinx directors are said to be joining the AMD Board of Directors.

On the other hand, AMD released its third-quarter financial results on Tuesday. For the third quarter of 2020, AMD reported $2.8B in revenue, a 56% jump over the same quarter a year ago.

“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,” said CEO Dr. Lisa Su.

“We are excited to join the AMD family, Joining together with AMD will help accelerate growth in our data centre business and enable us to pursue a broader customer base across more markets.” Xilinx CEO Victor Peng said.

Read more- https://gulfbrokers.com/en/xilinx-stock-jumps-on-35-billion-acquisition-deal
 
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