AMD to Acquire Xilinx, Creating the Industry’s High Performance Computing Leader

— Stra­te­gic transaction streng­t­hens AMD’s indus­try-lea­ding tech­no­lo­gy port­fo­lio 

  • Expands AMD’s rapidly gro­wing data cen­ter business
  • Xilinx, the No. 1 pro­vi­der of adap­ti­ve com­pu­ting solu­ti­ons, incre­a­ses AMD TAM to $110 billion
  • Immedia­te­ly accre­ti­ve to AMD mar­gins, cash flow and EPS
  • All stock tran­sac­tion with com­bi­ned enter­pri­se value of appro­xi­mate­ly $135 billion

SILICON VALLEY, Calif., Oct. 27, 2020 (GLOBE NEWSWIRE) — AMD (NASDAQ: AMD) and Xilinx (NASDAQ: XLNX) today announ­ced they have ent­e­red into a defi­ni­ti­ve agree­ment for AMD to acqui­re Xilinx in an all-stock tran­sac­tion valued at $35 bil­li­on. 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 tran­sac­tion is expec­ted to be immedia­te­ly accre­ti­ve to AMD mar­gins, EPS and free cash flow genera­ti­on and deli­ver indus­try-lea­ding growth.

The acqui­si­ti­on brings tog­e­ther two indus­try lea­ders with com­ple­men­ta­ry pro­duct port­fo­li­os and cus­to­mers. AMD will offer the industry’s stron­gest port­fo­lio of high per­for­mance pro­ces­sor tech­no­lo­gies, com­bi­ning CPUs, GPUs, FPGAs, Adap­ti­ve SoCs and deep soft­ware exper­ti­se to enab­le lea­ders­hip com­pu­ting plat­forms for cloud, edge and end devices. Tog­e­ther, the com­bi­ned com­pa­ny will capi­ta­li­ze on oppor­tu­nities span­ning some of the industry’s most important growth seg­ments from the data cen­ter to gaming, PCs, com­mu­ni­ca­ti­ons, auto­mo­ti­ve, indus­tri­al, aero­space and defense.

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,” AMD Pre­si­dent and CEO Dr. Lisa Su said. “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.”

We are exci­ted to join the AMD fami­ly. Our shared cul­tures of inno­va­ti­on, excel­lence and col­la­bo­ra­ti­on make this an ide­al com­bi­na­ti­on. Tog­e­ther, we will lead the new era of high per­for­mance and adap­ti­ve com­pu­ting,” said Vic­tor Peng, Xilinx pre­si­dent and CEO. “Our lea­ding FPGAs, Adap­ti­ve SoCs, acce­le­ra­tor and Smart­NIC solu­ti­ons enab­le inno­va­ti­on from the cloud, to the edge and end devices. We empower our cus­to­mers to deploy dif­fe­ren­tia­ted plat­forms to mar­ket fas­ter, and with opti­mal effi­ci­en­cy and per­for­mance. Joi­ning tog­e­ther with AMD will help acce­le­ra­te growth in our data cen­ter busi­ness and enab­le us to pur­sue a broa­der cus­to­mer base across more markets.”

With a com­bi­ned team of 13,000 talen­ted engi­neers and over $2.7 bil­li­on of annu­al1 R&D invest­ment, AMD will have addi­tio­nal talent and sca­le to deli­ver an even stron­ger set of pro­ducts and domain-spe­ci­fic solutions.

Addi­tio­nal Tran­sac­tion Details
Under the terms of the agree­ment, Xilinx stock­hol­ders will recei­ve a fixed exchan­ge ratio of 1.7234 shares of AMD com­mon stock for each share of Xilinx com­mon stock they hold at the clo­sing of the tran­sac­tion. Based on the exchan­ge ratio, this repres­ents appro­xi­mate­ly $143 per share of Xilinx com­mon stock2. Post-clo­sing, cur­rent AMD stock­hol­ders will own appro­xi­mate­ly 74 per­cent of the com­bi­ned com­pa­ny on a ful­ly dilu­t­ed basis, while Xilinx stock­hol­ders will own appro­xi­mate­ly 26 per­cent. The tran­sac­tion is inten­ded to qua­li­fy as a tax-free reor­ga­niz­a­ti­on for U.S. federal inco­me tax purposes.

AMD expects to achie­ve ope­ra­tio­nal effi­ci­en­ci­es of appro­xi­mate­ly $300 mil­li­on wit­hin 18 mon­ths of clo­sing the tran­sac­tion, pri­ma­ri­ly based on syn­er­gies in cos­ts of goods sold, shared infra­st­ruc­tu­re and through stream­li­ning com­mon areas.

The tran­sac­tion has been unani­mous­ly appro­ved by the AMD and Xilinx Boards of Direc­tors. The acqui­si­ti­on is sub­ject to appro­val by AMD and Xilinx share­hol­ders, cer­tain regu­la­to­ry appro­vals and other cus­to­ma­ry clo­sing con­di­ti­ons. The tran­sac­tion is cur­r­ent­ly expec­ted to clo­se by the end of calen­dar year 2021. Until clo­se, the par­ties remain sepa­ra­te, inde­pen­dent companies.

Manage­ment and Board of Directors
Dr. Lisa Su will lead the com­bi­ned com­pa­ny as CEO. Xilinx Pre­si­dent and CEO, Vic­tor Peng, will join AMD as pre­si­dent respon­si­ble for the Xilinx busi­ness and stra­te­gic growth initia­ti­ves, effec­ti­ve upon clo­sing of the tran­sac­tion. In addi­ti­on, at least two Xilinx direc­tors will join the AMD Board of Direc­tors upon closing.

Advi­sors
Credit Suis­se and DBO Part­ners are acting as finan­cial advi­sors to AMD and Lat­ham & Wat­kins LLP is ser­ving as its legal advi­sor. Mor­gan Stan­ley is acting as lead finan­cial advi­sor to Xilinx. BofA Secu­ri­ties is also acting as a finan­cial advi­sor and Skad­den, Arps, Sla­te, Meag­her & Flom LLP is ser­ving as legal counsel.

Tran­sac­tion Website
For more infor­ma­ti­on about the tran­sac­tion inves­tors are encou­ra­ged to visit http://ir.amd.com which will be used by AMD to dis­c­lo­se infor­ma­ti­on about the transaction.

Con­fe­rence Call and Web­cast Details
AMD will hold a con­fe­rence call for the finan­cial com­mu­ni­ty at 8:00 AM ET (5:00 AM PT) today to dis­cuss its third quar­ter 2020 finan­cial results and plans to acqui­re Xilinx. AMD will pro­vi­de a real-time audio broad­cast of the telecon­fe­rence on the Inves­tor Rela­ti­ons page of its web­site at www.amd.com. The web­cast will be avail­ab­le for 12 mon­ths after the con­fe­rence call.

About AMD
For more than 50 years AMD has dri­ven inno­va­ti­on in high per­for­mance com­pu­ting, gra­phics and visua­liz­a­ti­on tech­no­lo­gies ― the buil­ding blocks for gaming, immer­si­ve plat­forms and the data cen­ter. Hund­reds of mil­li­ons of con­su­mers, lea­ding For­tu­ne 500 busi­nes­ses and cut­ting-edge sci­en­ti­fic rese­arch faci­li­ties around the world rely on AMD tech­no­lo­gy dai­ly to impro­ve how they live, work and play. AMD employees around the world are focu­sed on buil­ding gre­at pro­ducts that push the bounda­ries of what is pos­si­ble. For more infor­ma­ti­on about how AMD is enab­ling today and inspi­ring tomor­row, visit the AMD (NASDAQ: AMDweb­siteblogFace­book and Twit­ter pages.

About Xilinx
Xilinx deve­lo­ps high­ly fle­xi­ble and adap­ti­ve pro­ces­sing plat­forms that enab­le rapid inno­va­ti­on across a varie­ty of tech­no­lo­gies — from the cloud to the edge and to the end­point. Xilinx is the inven­tor of the FPGA and Adap­ti­ve SoCs, desi­gned to deli­ver the most dyna­mic pro­ces­sor tech­no­lo­gy in the indus­try. We part­ner with our cus­to­mers to crea­te scala­b­le, dif­fe­ren­tia­ted and intel­li­gent solu­ti­ons to enab­le the adap­ta­ble, intel­li­gent and con­nec­ted world of the future. For more infor­ma­ti­on, visit www.xilinx.com.

Con­ta­ct information

Drew Prai­rie
AMD Communications
512–602-4425
drew.prairie@amd.com

Inves­tor Contact:
Lau­ra Graves
AMD Inves­tor Relations
408–749-5467
laura.graves@amd.com

Tara Sims
Xilinx Communications
415–713-5986
taras@xilinx.com

Suresh Bhas­ka­ran
Xilinx Inves­tor Relations
408–879-4784
ir@xilinx.com

Addi­tio­nal Infor­ma­ti­on about the Acqui­si­ti­on and Whe­re to Find It

In con­nec­tion with the pro­po­sed tran­sac­tion, AMD intends to file with the Secu­ri­ties and Exchan­ge Com­mis­si­on (the “SEC”) a regis­tra­ti­on state­ment on Form S‑4 that will inclu­de a joint pro­xy state­ment of AMD and Xilinx and that also will con­sti­tu­te a pro­spec­tus with respect to shares of AMD’s com­mon stock to be issued in the tran­sac­tion (the “joint pro­xy statement/prospectus”). Each of AMD and Xilinx may also file other rele­vant docu­ments with the SEC regar­ding the pro­po­sed tran­sac­tion. This docu­ment is not a sub­sti­tu­te for the joint pro­xy statement/prospectus or any other docu­ment that AMD or Xilinx may file with the SEC. The defi­ni­ti­ve joint pro­xy statement/prospectus (if and when avail­ab­le) will be mai­led to stock­hol­ders of AMD and Xilinx. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS THAT ARE OR WILL BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND RELATED MATTERS. Inves­tors and secu­ri­ty hol­ders will be able to obtain free copies of the joint pro­xy statement/prospectus (if and when avail­ab­le) and other docu­ments con­tai­ning important infor­ma­ti­on about AMD, Xilinx and the pro­po­sed tran­sac­tion, once such docu­ments are filed with the SEC through the web­site main­tai­ned by the SEC at www.sec.gov. Copies of the docu­ments filed with the SEC by AMD will be avail­ab­le free of char­ge on AMD’s web­site at ir.AMD.com or by con­ta­c­ting AMD’s Cor­po­ra­te Secreta­ry by email at Corporate.Secretary@AMD.com. Copies of the docu­ments filed with the SEC by Xilinx will be avail­ab­le free of char­ge on Xilinx’s web­site at inves­tor.Xilinx.com or by con­ta­c­ting Xilinx’s Inves­tor Rela­ti­ons depart­ment by pho­ne at 408–879-4784.

Par­ti­ci­pants in the Solicitation

AMD, Xilinx and cer­tain of their respec­ti­ve direc­tors and exe­cu­ti­ve offi­cers may be deemed to be par­ti­ci­pants in the soli­ci­ta­ti­on of pro­xies in respect of the pro­po­sed tran­sac­tion. Infor­ma­ti­on about the direc­tors and exe­cu­ti­ve offi­cers of AMD, inclu­ding a descrip­ti­on of their direct or indi­rect inte­rests, by secu­ri­ty hol­dings or other­wi­se, is set forth in AMD’s pro­xy state­ment for its 2020 annu­al mee­ting of stock­hol­ders, which was filed with the SEC on March 26, 2020. Infor­ma­ti­on about the direc­tors and exe­cu­ti­ve offi­cers of Xilinx, inclu­ding a descrip­ti­on of their direct or indi­rect inte­rests, by secu­ri­ty hol­dings or other­wi­se, is set forth in Xilinx’s pro­xy state­ment for its 2020 annu­al mee­ting of stock­hol­ders, which was filed with the SEC on June 19, 2020. Other infor­ma­ti­on regar­ding the par­ti­ci­pants in the pro­xy soli­ci­ta­ti­ons and a descrip­ti­on of their direct and indi­rect inte­rests, by secu­ri­ty hol­dings or other­wi­se, will be con­tai­ned in the joint pro­xy statement/prospectus and other rele­vant mate­ri­als to be filed with the SEC regar­ding the pro­po­sed tran­sac­tion. You may obtain free copies of the­se docu­ments using the sources indi­ca­ted above.

No Offer or Solicitation

This com­mu­ni­ca­ti­on is not inten­ded to and shall not con­sti­tu­te an offer to buy or sell or the soli­ci­ta­ti­on of an offer to buy or sell any secu­ri­ties, or a soli­ci­ta­ti­on of any vote or appro­val, nor shall the­re be any sale of secu­ri­ties in any juris­dic­tion in which such offer, soli­ci­ta­ti­on or sale would be unlaw­ful pri­or to regis­tra­ti­on or qua­li­fi­ca­ti­on under the secu­ri­ties laws of any such juris­dic­tion. No offer of secu­ri­ties shall be made, except by means of a pro­spec­tus mee­ting the requi­re­ments of Sec­tion 10 of the Secu­ri­ties Act of 1933, as amended.

For­ward Loo­king Statements

The state­ments in this com­mu­ni­ca­ti­on inclu­de for­ward-loo­king state­ments con­cer­ning AMD, Xilinx, the pro­po­sed tran­sac­tion descri­bed her­ein and other mat­ters. For­ward-loo­king state­ments may dis­cuss goals, inten­ti­ons and expec­ta­ti­ons as to future plans, trends, events, results of ope­ra­ti­ons or finan­cial con­di­ti­on, or other­wi­se, based on cur­rent beliefs and invol­ve nume­rous risks and uncer­tain­ties that could cau­se actu­al results to dif­fer mate­ri­al­ly from expec­ta­ti­ons. For­ward-loo­king state­ments speak only as of the date they are made or as of the dates indi­ca­ted in the state­ments and should not be reli­ed upon as pre­dic­tions of future events, as the­re can be no assuran­ce that the events or cir­cum­s­tan­ces reflec­ted in the­se state­ments will be achie­ved or will occur. For­ward-loo­king state­ments can often, but not always, be iden­ti­fied by the use of for­ward-loo­king ter­mi­no­lo­gy inclu­ding “belie­ves,” “expects,” “may,” “will,” “should,” “seeks,” “intends,” “plans,” “pro for­ma,” “esti­ma­tes,” “anti­ci­pa­tes,” “desi­gned,” or the nega­ti­ve of the­se words and phra­ses, other varia­ti­ons of the­se words and phra­ses or com­pa­ra­ble ter­mi­no­lo­gy. The for­ward-loo­king state­ments in this com­mu­ni­ca­ti­on rela­te to, among other things, obtai­ning app­li­ca­ble regu­la­to­ry and stock­hol­der appro­vals, satisfy­ing other clo­sing con­di­ti­ons to the pro­po­sed tran­sac­tion, the expec­ted tax tre­at­ment of the tran­sac­tion, the expec­ted timing of the tran­sac­tion, and the inte­gra­ti­on of the busi­nes­ses and the expec­ted bene­fits, cost savings, accre­ti­on, syn­er­gies and growth to result the­re­from. The­se for­ward-loo­king state­ments invol­ve risks and uncer­tain­ties that could cau­se actu­al results to dif­fer mate­ri­al­ly from tho­se con­tem­pla­ted by the state­ments. The­se risks inclu­de, among other things: fail­u­re to obtain app­li­ca­ble regu­la­to­ry or stock­hol­der appro­vals in a time­ly man­ner or other­wi­se; fail­u­re to satisfy other clo­sing con­di­ti­ons to the tran­sac­tion or to com­ple­te the tran­sac­tion on anti­ci­pa­ted terms and timing; nega­ti­ve effects of the announ­ce­ment of the tran­sac­tion; risks that the busi­nes­ses will not be inte­gra­ted suc­cess­ful­ly or that the com­bi­ned com­pa­nies will not rea­li­ze expec­ted bene­fits, cost savings, accre­ti­on, syn­er­gies and/or growth, or that such bene­fits may take lon­ger to rea­li­ze than expec­ted; the risk that dis­rup­ti­ons from the tran­sac­tion will harm busi­ness plans and ope­ra­ti­ons; risks rela­ting to unan­ti­ci­pa­ted cos­ts of inte­gra­ti­on; signi­fi­cant tran­sac­tion and/or inte­gra­ti­on cos­ts, or dif­fi­cul­ties in con­nec­tion with the tran­sac­tion and/or unknown or ine­s­tim­a­ble lia­bi­li­ties; restric­tions during the pen­den­cy of the tran­sac­tion that may impact the abi­li­ty to pur­sue cer­tain busi­ness oppor­tu­nities or stra­te­gic tran­sac­tions; poten­ti­al liti­ga­ti­on asso­cia­ted with the tran­sac­tion; the poten­ti­al impact of the announ­ce­ment or con­sum­ma­ti­on of the tran­sac­tion on AMD’s, Xilinx’s or the com­bi­ned company’s rela­ti­ons­hips with sup­pliers, cus­to­mers, employ­ers and regu­la­tors; and demand for the com­bi­ned company’s pro­ducts. A more ful­so­me dis­cus­sion of the risks rela­ted to the pro­po­sed tran­sac­tion will be inclu­ded in the joint pro­xy statement/prospectus . For a dis­cus­sion of fac­tors that could cau­se actu­al results to dif­fer mate­ri­al­ly from tho­se con­tem­pla­ted by for­ward-loo­king state­ments, see the sec­tion cap­tio­ned “Risk Fac­tors” in each of AMD’s and Xilinx’s Annu­al Report on Form 10‑K for the fis­cal years ended Decem­ber 28, 2019 and March 28, 2020, respec­tively, sub­se­quent Quar­ter­ly Reports on Form 10‑Q and other filings with the SEC. While the list of fac­tors pre­sen­ted here is, and the list of fac­tors pre­sen­ted in the joint pro­xy statement/prospectus will be, con­si­de­red repre­sen­ta­ti­ve, no such list should be con­si­de­red to be a com­ple­te state­ment of all poten­ti­al risks and uncer­tain­ties. Unlis­ted fac­tors may pre­sent signi­fi­cant addi­tio­nal obsta­cles to the rea­liz­a­ti­on of for­ward loo­king state­ments. Many of the­se risks and uncer­tain­ties may be exa­cer­ba­ted by the COVID-19 pan­de­mic and any wor­se­ning of the glo­bal busi­ness and eco­no­mic envi­ron­ment as a result. Neit­her AMD nor Xilinx assu­mes, and each her­eby dis­c­laims, any obli­ga­ti­on to update for­ward-loo­king state­ments, except as may be requi­red by law.

_______________
1 Based on trai­ling twel­ve months.
2 Based on an AMD pri­ce of $82.9726, which is the average of AMD’s dai­ly volu­me weigh­ted average pri­ces per share for the 10 con­se­cu­ti­ve tra­ding day peri­od up to and inclu­ding Octo­ber 8, 2020, the last tra­ding day pri­or to media reports regar­ding a poten­ti­al tran­sac­tion bet­ween AMD and Xilinx.

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