Summary
Advanced Micro Devices, Inc. (AMD) announced on July 23, 2006, a definitive agreement to acquire ATI Technologies Inc. in a cash and stock transaction valued at approximately $5.4 billion. This strategic acquisition aims to bolster AMD's product portfolio and competitive position within the semiconductor industry. The deal is structured as a Plan of Arrangement, where ATI will become a wholly owned subsidiary of AMD. The acquisition is subject to customary closing conditions, including ATI shareholder approval, regulatory clearances such as the Hart-Scott-Rodino Act, and a final order from the Ontario Superior Court of Justice. AMD has secured a commitment for a $2.5 billion credit facility from Morgan Stanley Senior Funding, Inc. to help finance the transaction. This move signifies a significant strategic step for AMD to enhance its offerings and market presence.
Key Highlights
- 1AMD to acquire ATI Technologies Inc. for approximately $5.4 billion in a cash and stock deal.
- 2The acquisition is structured as a Plan of Arrangement, making ATI a wholly owned subsidiary of AMD.
- 3The deal values ATI at $20.47 per share, based on AMD's closing stock price on July 21, 2006.
- 4Transaction requires ATI shareholder approval and significant regulatory clearances, including HSR approval.
- 5AMD has secured a $2.5 billion commitment for a credit facility from Morgan Stanley to finance the acquisition.
- 6Two members of ATI's board will join AMD's Board of Directors.
- 7ATI's key executives and board members have entered into voting agreements to support the acquisition.