AMD and Xilinx announced Wednesday that their respective shareholders "overwhelmingly" approved of AMD's plan to acquire Xilinx by the end of the year.
Those shareholders essentially followed the companies' board of directors, both of which unanimously approved the deal when it was announced in October 2020. Now the deal's main obstacle is regulatory approval, which the companies expect to get.
The acquisition would be an all-stock transaction through which AMD shareholders would own 74% of the combined company and Xilinx shareholders would own 26%. AMD's share price was about $143 when the deal was announced; it's currently $82.
AMD said yesterday that the deal "will bring together two industry leaders with complementary product portfolios and customers, combining CPUs, GPUs, FPGAs, Adaptive SoCs and deep software expertise" in a single market-leading company.
The companies have worked together on deep learning projects before, but this acquisition would reportedly lead to an increased annual R&D spend of $2.7 billion, and the combined company would employ an estimated 13,000 engineers.
The deal is also expected to give AMD more leverage with TSMC by making it an even bigger part of the foundry's business. Apple would still be TSMC's largest customer, but AMD could cement its place as second-largest, and the Xilinx deal would help.
"The closing of the transaction remains subject to the satisfaction of other customary closing conditions," AMD said Wednesday, "including the receipt of required regulatory approvals. The companies continue to expect that the transaction will be completed by the end of the 2021."