The company also reported third-quarter earnings that beat analysts’ estimates.
Under terms of the deal, Xilinx investors will receive 1.7234 AMD shares for each Xilinx stock they own. The agreement values Xilinx at about $143 a share.
The merger is expected to close by the end of 2021. The deal still needs approval from shareholders and regulators. China also will have to approve the transaction.
“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 AMD CEO and President Lisa Su. “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.”
AMD posted third-quarter adjusted earnings of 41 cents a share, beating Wall Street forecasts of 35 cents. Revenue of $2.8 billion rose from $1.8 billion a year earlier and topped analysts’ projections of $2.56 billion.
Jim Cramer breaks down why Lisa Su made the move in the video above.