Posted by : trraju on Oct 27, 2006 - 12:03 AM Hardware

Chip-maker Advanced Micro Devices Inc. announced Wednesday that it completed the takeover of Canadian graphic chip-maker ATI Technologies Inc. in a cash-stock deal worth about $5.4 billion.
The purchase of Markham, Ontario-based ATI by Intel Corp.'s biggest rival in the market for personal-computer microprocessors could shift the balance of power in the chip industry in significant ways, as AMD's product portfolio mushrooms.
The acquisition gives Sunnyvale-based AMD a total of 15,000 employees, an arsenal of intellectual property and a wide array of chips for personal computers, mobile devices, sophisticated video game systems and other electronics.
"Today marks a historic day for our employees, our partners and our customers as we officially welcome ATI into the AMD family," said AMD Chairman and CEO Hector Ruiz. "On day one, we are delivering a winning set of complementary technologies, igniting a new level of innovation and continuing to champion choice for the industry."
Under the terms of the deal, AMD acquired all outstanding common shares of ATI for $4.3 billion in cash and 58 million shares of AMD common stock. Based on the $20.32 per share price of AMD's stock on Tuesday, that put the value of the transaction at $5.4 billion. To pay for ATI, AMD used its cash and cash equivalents, as well as a $2.5 billion term loan from Morgan Stanley Senior Funding Inc.
Shares of AMD rose 50 cents, or nearly 2.5 percent, to $20.82 in Wednesday trading on the New York Stock Exchange.

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