US microprocessor giant AMD will acquire Canadian technology company ATI in a deal valued at approximately 5.4 billion dollars, the companies said Monday in a joint statement.
The merger will create a processing powerhouse by teaming AMD with ATI's strengths in graphics, chipsets and consumer electronics, they said.
Under the terms of the transaction, AMD will acquire all of the outstanding common shares of ATI for a combination of 4.2 billion dollars in cash and 57 million shares of AMD common stock, based on the number of shares of ATI common stock outstanding on July 21.
AMD said the cash-and-shares transaction was expected to boost earnings "slightly" in 2007, and be "meaningfully accretive" in 2008.
The transaction was unanimously approved by the board of directors of each company, and is subject to shareholder and regulatory approval, the companies said.
AMD, headquartered in Sunnyvale, California, said it would maintain sales, design and manufacturing centers worldwide and major business centers in Silicon Valley; Austin, Texas; and Markham, Ontario.
