New York—Advanced Micro Devices Monday announced it will acquire ATI in a deal valued at about $5.4 billion. The merger will bring together AMD's microprocessor technology with ATI's strengths in graphics, chipsets and consumer electronics.
AMD plans to acquire all outstanding common shares of ATI for a combination of $4.2 billion in cash and 57 million shares of AMD common stock. The deal is expected to be completed in the fourth quarter.
ATI President-CEO Dave Orton will serve as exec VP of the ATI business division. In addition, two ATI directors will join AMD's board of directors upon completion of the deal.