The purchase of AMD-Xilinx is expected to end in the first quarter of 2022

AMD sent a brief update to the public and investors this afternoon, offering an update on the status of Xilinx’s current purchase. AMD’s acquisition of the FPGA maker, previously expected to close by the end of this year, is now expected to be completed in the first quarter of 2022. Attributing the delay to regulatory approval delays, AMD believes it will finally be able to secure the necessary approval for a $ 35 billion deal in the next quarter.

As a quick refresh, AMD first announced its intention to buy Xilinx back in October 2020. The FPGA maker has been a lucrative target for AMD, whose sales (and market capitalization) have been growing by leaps and bounds in recent years. This has brought AMD to the point where it is looking at diversification, as well as covering all the gaps in their product line that would hold them back in the server market. As the plan goes, the purchase of Xilinx will allow AMD to offer an FPGA alongside (and potentially integrated) with its current CPU and GPU / accelerator products.

The deal was previously expected to close by the end of 2021, and AMD has remained very muted on the issue beyond their original announcement. Nevertheless, obtaining the necessary regulatory approval obviously takes AMD longer than planned. According to the company, they do not expect to have to change the contract or any of its conditions, but they will need another quarter to get the final approvals needed to close the deal.

“We continue to make progress on the necessary regulatory approvals to close our transaction. Although we previously expected to receive all approvals by the end of 2021, we have not yet completed the process and now expect the transaction to close in the first quarter of 2022. Our talks with regulators continue to progress productively, and we expect you to receive all necessary approvals . ”

There are no further changes to the previously announced terms or plans regarding the transaction and companies continue to look forward to the proposed combination that will create a leader in the high performance and adaptive computing industry.

Source link

Naveen Kumar

Friendly communicator. Music maven. Explorer. Pop culture trailblazer. Social media practitioner.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button