AMD To Buy ZT Systems For Apprx. $4.9 Bln In Cash And Stock

(RTTNews) - Advanced Micro Devices, Inc. (AMD) Monday said it has agreed to acquire ZT Systems, a provider of hyperscale server solutions for cloud computing and artificial intelligence, for about $4.9 billion, 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 center systems expertise will enable AMD to deliver end-to-end data center AI infrastructure at scale with our ecosystem of OEM and ODM partners," said AMD Chair and CEO 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 2025 end.

Upon closing the deal, ZT Systems will join the AMD Data Center Solutions Business Group. ZT's CEO Frank Zhang will lead the manufacturing business and president Doug Huang will lead the design and customer enablement teams. Also, AMD will seek a strategic partner to acquire ZT Systems' U.S.-based data center infrastructure manufacturing business.