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US chip firm AMD to acquire ZT Systems in deal worth almost $5bn

AMD Headquarters.
19 Aug 2024 16:51

New York (dpa)

US semiconductor company Advanced Micro Devices Inc (AMD) said on Monday that it will buy server maker ZT Systems in a deal worth about $4.9 billion.

ZT Systems is a provider of hyperscale server solutions for cloud computing and artificial intelligence (AI). The amount is to be paid in cash and stock.

"Combining our high-performance Instinct AI accelerator, EPYC CPU, and networking product portfolios with ZT Systems' industry-leading data centre systems expertise will enable AMD to deliver end-to-end data centre AI infrastructure at scale with our ecosystem of OEM [original equipment manufacturer] and ODM [original design manufacturer] partners," said AMD chair and chief executive Lisa Su.

The purchase price includes a contingent payment of up to $400 million based on certain post-closing milestones. The company expects the deal to add to its adjusted earnings by the end of 2025.

Upon closing the deal, ZT Systems will join the AMD data centre solutions business group. 

ZT's chief executive, Frank Zhang, will lead the manufacturing business and president Doug Huang will lead the design and customer enablement teams, the company said.

Also, AMD will seek a strategic partner to acquire ZT Systems' US-based data centre infrastructure manufacturing business.

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