AMD to buy ZT Systems in $7b deal
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The news: Advanced Micro Devices (AMD) has agreed to acquire server manufacturer ZT Systems in a cash and stock deal valued at USD4.9 billion (7.29 billion).
The context: The acquisition expands AMD’s AI chip and hardware portfolio and bolsters its data centre technology for its ongoing competitive battle against Nvidia.
ZT will integrate into AMD’s Data Center Solutions Business Group, with AMD retaining ZT's design and customer teams while planning to sell the manufacturing division.
The numbers: The deal will be financed 75% in cash and 25% in stock, and the purchase price includes a contingent payment of USD400 million based on specific milestones, AMD said in a statement.
What they said: "AI is the most transformational technology of the last 50 years and our No. 1 strategic priority," AMD Chief Executive Officer Lisa Su said in a call with investors on Monday.
Su added the deal will help its largest customers speed up the development of AMD’s AI infrastructure.
The sources: AMD statement, Bloomberg
