The renowned chip maker, AMD, today, made one of the largest tech deals. It acquired rival company Xilinx in all-stock transaction, which valued at $35 billion.

A top provider of adaptive computing solutions, the combined $135 billion entity by Xilinx and AMD, will have nearly 13,000 engineers and expand AMD’s total addressable market to $110 billion.

With this, there will be significant expansion in the breadth of AMD’s product portfolio and customer base in the diverse market, where Xilinx is an established leader. This is said in a statement by AMD.

Dr. Lisa Su, AMD President and CEO, said, “Our acquisition of Xilinx marks the next leg in our journey to establish AMD as the industry's high performance computing leader and partner of choice for the largest and most important technology companies in the world. By combining our world-class engineering teams and deep domain expertise, we will create an industry leader with the vision, talent and scale to define the future of high performance computing.”

By offering industry’s strongest portfolio of high performance processor technologies, combining CPUs, GPUs, FPGAs, Adaptive SoCs, and deep software expertise, AMD will enable leadership computing platforms for cloud, edge and end services.

The combination of AMD and Xilinx will capitalize on opportunities spanning some of the industry’s most important growth segments from the data center to gaming, PCs, communications, automotive, industrial, aerospace and defense.

Victor Peng, Xilinx president and CEO, "Our leading FPGAs, adaptive SoCs, accelerator and SmartNIC solutions enable innovation from the cloud, to the 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."

With $2.7+ billion of annual R&D investment, AMD will get additional talent and scale for delivering an even stronger set of products and domain-specific solutions.

It is expected that the transaction to close by the end of 2021.

In between this, AMD on Tuesday declared that revenue for the third quarter of 2020 of $2.8 billion, while operating income of $449 million, net income of $390 million and diluted earnings per share of $0.32.

Lisa Su said, "Our business accelerated in the third quarter as strong demand for our PC, gaming and data center products drove record quarterly revenue. We reported our fourth straight quarter with greater than 25 percent year-over-year revenue growth, highlighting our significant customer momentum.”

The net income was $390 million, which is more than compared to $120 million a year ago, and $157 million in the prior quarter.

Su said, "We are well positioned to continue delivering best-in-class growth as we further extend our leadership product portfolio with the launches of our next generation Ryzen, Radeon and EPYC processors."

The revenue was $1.67 billion from Computing and Graphics.