Sunnyvale, Calif. — AMD reported today it will buy graphics card maker ATI in a cash and stock deal for $5.4 billion.
The transaction has AMD paying $4.2 billion 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 executives said the addition of ATI will essentially create an entirely new company able to generate integrated solutions while continuing to build after-market products for customers interested in assembling personalized systems. The deal will aid AMD’s plan for 2008 and beyond, when the company intends to move beyond current technological configurations to transform processing technologies, with silicon-specific platforms that integrate microprocessors and graphics processors to address the growing need for general-purpose, media-centric, data-centric and graphic-centric performance.
“This combination means accelerated growth for ATI and broader horizons for our employees,” said Dave Orton, president/CEO of ATI. “All of our product lines will benefit. Joining with AMD will enable us to innovate aggressively on the PC platform, and continue to invest significantly in our consumer business to stay in front of our markets.”