AMD buys ATI

By agencies   |   Monday, 24 July 2006, 07:00 Hrs
Printer Print Email Email
BANGALORE: The worldÂ’s second biggest computer chip maker, AMD today said it would acquire graphics card maker ATI Technologies Inc for $5.4 billion, mostly in cash.

Ontario, Canada-based ATI, which makes chipsets and graphics chips for computers, also makes chips for consumer products such high definition TVs and cell phones.

Around 80 percent of the deal consideration will be in cash and the rest in AMD stock. The transaction is expected to close in Q4 2006.

In the event that the transaction does not close, ATI has agreed to pay AMD a termination fee of $162.0 million under circumstances specified in the acquisition agreement.

AMD expects that the transaction will be slightly accretive to earnings in 2007, and meaningfully accretive in 2008, before the inclusion of ATI acquisition–related charges, based upon AMD's plans to deliver more integrated and advanced platform solutions and thereby improve its position in commercial clients, mobile computing, gaming, media and emerging markets.

SPOTLIGHT
IBM announces programme
n a bid to recognise the contribution of developers in the open source community, Information ..
Google's Gboard gets offline
Google is adding an Artificially Intelligent (AI) offline dictation feature on its Gboard keyb..
Wipro opens third industrial
IT major Wipro Ltd on Thursday opened its centre of excellence for Industrial Internet of Things (..
Facebook denies cyber attack
Facebook ruled out a cyber attack on its products Whatsapp, Instagram and Messenger, which suf..