The Santa Clara-based semiconductor company [AMD (NASDAQ: AMD 125.77 -5.33%)], just announced a major development regarding its efforts to acquire Xilinx, a supplier of programmable logic devices.
In a recent AMD announcement, AMD says it has secured all requisite approvals to close the Xilinx deal by next week:
“With the exception of the remaining customary closing conditions, all conditions to the transaction closing have been satisfied and the company expects the transaction to close on or about February 14, 2022.”
Back in October 2020, AMD had announced its intention to acquire Xilinx via an all-stock deal that was priced at a 20 percent premium to Xilinx’s share price at the time.
Chinese authorities held the deal for quite a while. But in the end, China did approve AMD’s buyout of Xilinx with the caveat of additional conditions with a commitment to preclude any bundling deal between the products retailed separately by AMD and Xilinx. The Chinese State Administration for Market Regulation (SAMR) has also suggested that Xilinx’s products remain compatible with AMD’s Instruction Set Architecture (ISA) and that the merged entity maintains overall compatibility with products in the Chinese market.
With a solid foothold Xilinx manufactures programmable chips for wireless networks, and its acquisition will provide AMD in an industry that is currently in instability. With carriers infiltrating billions of dollars in the telecommunication sphere in order to grow the range of the next-gen 5G wireless network, Xilinx has become an important node in this industry. The acquisition of Xilinx will also allow AMD to better compete against Intel’s sizable footprint in the data-center sphere. Moreover, the FPGAs produced by Xilinx will let AMD grow into the rapidly developing AI and networking components, strengthening the company’s portfolio breadth.
Considering AMD’s pre-market stock price, investors don’t appear engaged with today’s development. The reality that US January 2022 CPI rose by 7.5 percent, including the fastest inflationary impulse since 1982, is likewise considered on tech-focused increase stock as it paves the path for a much more fierce interest rate hike regime by the Federal Reserve.
Data source: wccftech.com