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Accelerate the "data center priority" strategy! Xilinx Announces Acquisition of Communications Company Solarflare

  On April 25, Xilinx, a global leader in programmable logic solutions, announced that it has reached a definitive agreement to acquire Solarflare Communications, a private company based in Irvine, California.

It is understood that Solarflare is a leading global provider of high performance, low latency network solutions spanning financial technology to cloud computing. Through this acquisition, Xilinx is able to combine its industry-leading FPGA, MPSoC and ACAP solutions with Solarflare's ultra-low latency network interface card (NIC, NIC) technology and Onload application acceleration software to achieve a new Integrate SmartNIC solutions to accelerate Xilinx's “data center priority” strategy and the path to transformation for platform companies.

Xilinx became a strategic investor in Solarflare in 2017, and the two companies have been working together to develop advanced networking technologies for the past two years. Recently, the two companies demonstrated their first joint solution, a single-chip FPGA-based 100G SmartNIC that can process 100 million packets per second with less than 75 watts of power.

According to Xilinx, the US stock market announced on April 24th the fourth quarter of the 2019 fiscal year (as of March 30, 2019): revenue increased 30% (4% quarter-on-quarter) to a record 828 million Dollar.

In terms of the end market, Xilinx's fourth-quarter communications-related product revenue increased 74% (23% quarter-on-quarter), revenue share rose from 41% a year ago to 41%; industrial, aviation and defense-related Product revenue increased by 1% (2% increase in the quarter), revenue share decreased from 27% from 1 year ago to 27%; data center and TME (test, measurement and simulation) revenue decreased by 7% (quarterly decrease) 12%), revenue share decreased from 25% from 1 year ago to 18%; vehicle, broadcast and consumer revenue increased 20% (quarterly minus 6%), revenue accounted for 15 years ago % dropped to 14%.

Xilinx pointed out that in the 2019 fiscal year, communication-related product revenues will be deployed in South Korea with 5G and China's plans to deploy 5G will increase by 34% next year. Xilinx and Samsung Electronics jointly completed the world's first 5G new radio (NR) commercial deployment in fiscal year 2019.

For the acquisition, Solarflare CEO Russell Stern said, “Since Xilinx has become a strategic investor, the Solarflare team and Xilinx have been working closely together on next-generation networking technologies and business collaboration. Future data centers and cloud computing share a common vision. The integration of their respective technologies through acquisitions will make the acquisition ideal for our customers, employees, investors and even the broader data center industry. And a solid step."

Salil Raje, executive vice president and general manager of the data center at Xilinx, said, "Solarflare is a leader in many key areas such as high-speed Ethernet, application acceleration and NVMe-over-fabrics, all of which are building a new generation of enterprises and An important part of Cloud's SmartNIC technology. The acquisition of Solarflare not only brings Xilinx's market-leading technology, but also captures the engineering expertise of network hardware, software, firmware and drivers. We are at Solarflare Joining Xilinx to work with us to create all the possibilities that the world of flexibility and intelligence will bring is very exciting."

The acquisition will follow customary closing conditions and regulatory review and is expected to be completed in the second quarter of Xilinx 2020 (the third quarter of 2019).