Mubasher: Advanced Micro Devices Inc (AMD) agreed to acquire rival chipmaker Xilinx Inc in a $35 billion all-stock deal, Reuters reported on Tuesday.

Under the deal, a combined company with 13,000 engineers will be created, intensifying the competition with Intel Corp in the data centre chip market.

The agreement, expected to be concluded at the end of 2021, will see Xilinx’s shareholders obtain about 1.7 shares of AMD’s common stock for each share of Xilinx’s common stock.

This transaction would value Xilinx at $143 a share, or about 24.8% higher than its $114.55 closing price on 26 October.

AMD’s shareholders will hold about 74% of the combined company, while Xilinx’s shareholders will own the remaining 26%.

AMD posted revenue and adjusted earnings of $2.80 billion during the third quarter (Q3) of 2020, compared to $1.801 billion in the year-ago period, and net income of $390 million, up from $120 million in Q3-19.