Dave Orton (ATI) and Hector Ruiz (AMD) shake on the deal

The wait is over, ATI and AMD have sealed the deal! AMD agreed to buy ATI Technologies Inc. for $5.4 billion, adding computer-graphics chips to its product lineup. ATI stockholders will receive $20.47, including $16.40 in cash and 0.2229 Advanced Micro shares, for each ATI share, the companies said in a Business Wire statement. The offer is 24 percent more than ATI's closing price last week.

The combination will create a processing powerhouse by bringing AMD's technology leadership in microprocessors together with ATI's strengths in graphics, chipsets and consumer electronics. The result: A new and more formidable company, determined to drive growth, innovation and choice for its customers, particularly in the commercial and mobile computing segments and in the rapidly-growing consumer electronics market. Combining technologies, people, and complementary strengths, AMD plans to deliver in 2007 customer-centric platforms for the benefit of customers who want to collaborate in the development of differentiated solutions.