updated 03:30 pm EDT, Mon July 24, 2006
AMD buys ATI for $5.4B
AMD has agreed to purchase ATI for roughly $5.4 billion in cash and stock in an effort to expand its product mix. The terms of the deal would include $4.2 billion in cash and 57 million shares of AMD common stock, with AMD paying $20.47 for each ATI share at a 24 percent premium above ATI's closing stock price on Friday, according to Reuters. ATI currently supplies the majority of Graphics Processing Units used in Apple's computer systems, but AMD's arch-rival Intel supplies the Cupertino-based company's CPUs for its new Intel-based Macs. The consideration for every outstanding share of ATI is made up of $16.40 in cash and 0.2229 share of AMD common stock, according to the report. AMD said it expects to fund the cash portion of the deal with a mix of cash and new debt.