AMD Acquires ATI For $5.4 Billion
AMD expects that the transaction will be slightly accretive to earnings in 2007, and meaningfully accretive in 2008, before the inclusion of ATI acquisitionrelated charges, based upon AMDs plans to deliver more integrated and advanced platform solutions and thereby improve its position in commercial clients, mobile computing, gaming, media and emerging markets. AMD anticipates that it will reduce operating expenses by approximately $75 million for the combined company by the end of 2007.
The combined company would have achieved approximately $7.3 billion in total consolidated sales during the last four quarters with a workforce of approximately 15,000 employees. Headquartered in Sunnyvale, California, the company will maintain sales, design and manufacturing centers worldwide and major business centers in Silicon Valley, Austin, Texas and Markham, Ontario: all valued centers of innovation for the combined company. AMDs current executive team will be complemented by the addition of ATI president/ceo Dave Orton, who will serve as an evp of the ATI business division, reporting to the AMD office of the ceo, comprised of chairman/ceo Ruiz and president/coo Dirk Meyer. In addition, under the terms of the acquisition agreement, two ATI directors will join AMDs board of directors upon closing of the transaction.
Advanced Micro Devices (www.amd.com) is a leading global provider of innovative microprocessor solutions for computing, communications and consumer electronics markets. Founded in 1969, AMD is dedicated to delivering superior computing solutions based on customer needs that empower users worldwide.
ATI Technologies Inc. (www.ati.com) is a world leader in the design and manufacture of innovative 3D graphics, PC platform technologies and digital media silicon solutions. An industry pioneer since 1985, ATI is one of the foremost graphics processor unit (GPU) provider and is dedicated to deliver leading-edge performance solutions for the full range of PC and Mac desktop and notebook platforms, workstation, set-top and digital television, game console and handheld device markets. With fiscal 2005 revenues of $2.2 billion, ATI has approximately 4,000 employees in the Americas, Europe and Asia.