AMD stockholders will own about 74 percent of the combined company, with Xilinx stockholders owning approximately 26 percent.
The transaction will give AMD a strong portfolio of high performance processor technologies, combining CPUs, GPUs, FPGAs, Adaptive SoCs and deep software expertise to enable leadership computing platforms for cloud, edge and end devices.
“Joining together with AMD will help accelerate growth in our data center business and enable us to pursue a broader customer base across more markets,” Xilinx CEO Victor Peng said in a prepared statement.
AMD CEO Dr. Lisa Su will lead the combined company as CEO. Peng will join AMD as president, responsible for the Xilinx business and strategic growth initiatives. At least two Xilinx directors will join the AMD's board once the transaction is complete.
The deal is expected to close by the end of next year. It still needs approval from shareholders of both companies.
Shares of Xilinx fell nearly 2 percent before the market open on Tuesday, while AMD's stock rose slightly.