From Yahoo Finance: 2025-05-20 06:17:00

Advanced Micro Devices (AMD) has agreed to sell ZT Systems’ data center manufacturing business to Sanmina for up to $3bn. Sanmina will pay $2.25bn in cash and a $300m premium split between cash and equity. An additional $450m will be paid based on business performance over three years. The deal aims to enhance Sanmina’s cloud and AI infrastructure offerings.

The acquisition will boost Sanmina’s scale and cloud market exposure. Sanmina plans to enhance its component technology, systems integration, and supply chain solutions. The transaction, subject to regulatory approval, is set to close by late 2025. AMD will retain ZT Systems’ design and customer support teams.

Sanmina’s chairman and CEO, Jure Sola, highlighted the synergies between the companies. The partnership aims to provide competitive solutions for customers throughout the product lifecycle. AMD’s Data Center Solutions EVP Forrest Norrod expressed excitement about accelerating US-based manufacturing of AI solutions with Sanmina. The deal aligns with AMD’s commitment to quality and flexibility in the AI ecosystem.

Morgan Stanley is advising AMD on the financial aspect of the deal, with legal counsel provided by Latham & Watkins. The sale of ZT Systems’ server manufacturing business for $3bn follows AMD’s acquisition of ZT Systems for $4.9bn in 2024. The goal is to strengthen AMD’s AI offerings and manufacturing capabilities.



Read more at Yahoo Finance: AMD to offload ZT Systems server-manufacturing for $3bn