Advanced Micro Devices (NASDAQ:AMD) stock is rising higher today after completing its acquisition of Xilinx (NASDAQ:XLNX).
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Let’s dive into everything potential investors in AMD stock need to know about the merger deal below!
- First off, today’s news brings an end to an over year-long plan for AMD and Xilinx to merge.
- The initial announcement was made all the way back in October 2020.
- While investors have been waiting some time for the deal to close, it’s going to pay off immediately.
- According to AMD, this merger will be accretive to non-GAAP margins, non-GAAP EPS, and free cash flow generation in the first year.
- It’s also worth noting that the merger deal means that shares of XLNX stock are no longer trading.
- The merger agreement had holders of XLNX stock receiving 1.7234 shares of AMD stock for each of their shares.
- There was also a cash payout for any fractional shares that were left over from the merger.
- Also, former Xilinx president and CEO Victor Peng is now head of AMD’s new Adaptive and Embedded Computing Group.
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Peng said the following about the merger in the statement below.
“Bringing AMD and Xilinx together will accelerate our ability to define this new era of computing by providing the most comprehensive portfolio of adaptive computing platforms capable of powering a wide range of intelligent applications.”
AMD stock is seeing heavy trading today on the merger news. As of this writing, more than 77 million shares of the stock have changed hands. That’s above the company’s daily average trading volume of roughly 71.8 million shares.
AMD stock is up 2.5% as of Monday afternoon.
Investors interested in more recent stock market news can find it below!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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