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AMD to acquire ZT Systems in $4.9bn deal

Published 08/19/2024, 06:18 AM
Updated 08/19/2024, 06:20 AM
© REUTERS AMD to acquire ZT Systems in $4.9bn deal
AMD
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AMD (NASDAQ:AMD) has announced Monday that it has signed an agreement to acquire ZT Systems, a leading provider of AI infrastructure, in a cash and stock transaction valued at $4.9 billion.

This strategic acquisition aims to bolster AMD's capabilities in data center AI systems, addressing the growing $400 billion data center AI accelerator opportunity expected by 2027.

ZT Systems, based in Secaucus, New Jersey, has over 15 years of experience designing and deploying data center AI compute and storage infrastructure for major global cloud companies.

The acquisition will bring ZT Systems' expertise in designing and optimizing cloud computing solutions into AMD's fold, enhancing its ability to deliver end-to-end AI infrastructure at scale.

AMD CEO Dr. Lisa Su highlighted that this acquisition is a significant step in AMD's long-term AI strategy, stating, "ZT adds world-class systems design and rack-scale solutions expertise that will significantly strengthen our data center AI systems and customer enablement capabilities."

"This acquisition also builds on the investments we have made to accelerate our AI hardware and software roadmaps."

Following the acquisition, ZT Systems will become part of AMD's Data Center Solutions Business Group. ZT's CEO Frank Zhang will oversee the manufacturing business, while President Doug Huang will lead design and customer enablement teams, both reporting to AMD Executive Vice President Forrest Norrod.

AMD plans to seek a strategic partner to acquire ZT Systems' U.S.-based data center infrastructure manufacturing business as it focuses on expanding its AI hardware and software roadmap.

The transaction, expected to close in the first half of 2025, is anticipated to be accretive on a non-GAAP basis by the end of 2025.

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