Chip manufacturer AMD is to buy graphic chipsets firm ATI in a $5.4bn (£2.9bn) deal.
The move comes as AMD launched a new price list, with price cuts aimed at boosting the company’s position against arch-rival Intel.
The acquisition forms part of AMD’s plans to integrate microprocessors and graphics processors to meet demand in key market segments, such as gaming, the design and media sector and mobile devices.
The move will create a company with a 15,000-strong workforce generating an expected $7.3bn in sales. It is also expected to bring $75m in efficiency savings across the combined company by the end of 2007.
AMD chief executive Hector Ruiz said, “Bringing these two great companies together will allow us to transcend what we have accomplished as individual businesses and reinvent our industry as the technology leader and partner of choice.”
API chief executive Dave Orton said, “This combination means accelerated growth for ATI, and broader horizons for our employees. All of our product lines will benefit. Joining with AMD will enable us to innovate aggressively on the PC platform, and continue to invest significantly in our consumer business to stay in front of our markets.”
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