Latest news with #ZTSystems'
Yahoo
20-05-2025
- Business
- Yahoo
AMD to offload ZT Systems server-manufacturing for $3bn
Advanced Micro Devices (AMD) has agreed to divest ZT Systems' data centre infrastructure manufacturing business to Sanmina for up to $3bn The deal positions Sanmina as a preferred partner for the manufacturing of AMD's cloud rack and cluster-scale AI solutions. Under the deal terms, Sanmina will take over ZT Systems' operations for $2.25bn in cash, $300m premium split between cash and equity. The deal also includes a contingent consideration of $450m based on the financial performance of the business over the next three years. With the acquisition, Sanmina expects to increase scale and end-market exposure to cloud and ai infrastructure. It also anticipates bolstering its offering of end-to-end component technology, systems integration, and supply chain solutions. Sanmina chairman and CEO Jure Sola said: "ZT Systems' liquid cooling capabilities, high-quality manufacturing capacity and significant cloud and AI infrastructure experience are the perfect complement to Sanmina's global portfolio, mission-critical technologies and vertical integration capabilities. 'Together, we will be better able to deliver a competitive advantage to our customers with solutions for the entire product lifecycle. We look forward to our ongoing partnership with AMD as we work together to set the standard for quality and flexibility to benefit the entire AI ecosystem.' Subject to regulatory approval and standard closing conditions, the transaction is scheduled for completion by late 2025. AMD, however, will maintain ZT Systems' design and customer support teams. AMD Data Center Solutions business unit executive vice-president and general manager Forrest Norrod said: "We look forward to working with Sanmina as our preferred NPI manufacturing partner. 'This agreement will help accelerate the US-based manufacturing of AMD AI end-to-end training and inference solutions – which are optimised for our customer's unique environments, ready-to-deploy at scale and based on our open approach. 'Together, we will accelerate time-to-market and set the standard for quality and flexibility to benefit the entire AI ecosystem." Morgan Stanley is advising AMD financially, while Latham & Watkins is providing legal counsel. The sale follows AMD's deal to acquire ZT Systems for $4.9bn in 2024, with the intention to sell the server manufacturing business upon completion of the deal. "AMD to offload ZT Systems server-manufacturing for $3bn" was originally created and published by Verdict, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
AMD strikes a deal to sell ZT Systems' server-manufacturing business for $3B
Semiconductor giant AMD followed through with its plan to spin out ZT Systems' server-manufacturing business. AMD announced on Monday that it was selling ZT Systems' server-manufacturing business to electronic manufacturing services company Sanmina. The $3 billion deal is a mix of cash and stock: $2.25 billion in cash; a $300 million premium, including 50% cash and 50% equity; and a $450 million contingent payment based on financial performance over the next three years, according to Reuters. The deal is expected to close by the end of 2025, subject to regulatory approval. After this divestiture, AMD will maintain control of ZT Systems' rack-scale AI solutions design business. This announcement isn't a shock. When AMD announced its intent to acquire ZT Systems, an AI and cloud infrastructure company, for $4.9 billion in August 2024, the company said at the time that it planned to divest that part of ZT Systems' business after the deal formally closed. AMD's acquisition of ZT Systems officially closed in March 2025, according to Reuters. Alongside this announcement, AMD said that Sanmina will become a "preferred" new product introduction manufacturing partner for AMD cloud rack and cluster-scale AI solutions. 'By combining the deep experience of our AI systems design team with our new preferred NPI partnership with Sanmina, we expect to strengthen our U.S-based manufacturing capabilities for rack and cluster-scale AI systems and accelerate quality and time-to-market for our cloud customers,' said Forrest Norrod, executive vice president and general manager, data center solutions business unit at AMD, in the company's announcement. TechCrunch reached out to AMD for comment. This article originally appeared on TechCrunch at
Yahoo
20-05-2025
- Business
- Yahoo
Sanmina to Acquire ZT Systems' Manufacturing Business from AMD
Sanmina agreed to acquire ZT Systems' data center infrastructure manufacturing business from Advanced Micro Devices for up to $3 billion. The manufacturing services provider will provide $2.25 billion of cash, $300 million consisting of an even split in cash and equity, and a $450 million contingent consideration based on financial performance of the business for the next three years. Will Anyone Take the Factory Jobs Trump Wants to Bring Back to America? Jamie Dimon Says Tariffs Might Inflict More Economic Pain Than Investors Realize CBS News Chief to Leave as Tension Persists Over Paramount's Trump Fight Howard Lutnick Transfers Ownership of Cantor Fitzgerald to His Children Porsche Tried to Be Both Ferrari and Mercedes. With the Trade War, It Struggles to Be Either. Chip maker AMD will retain ZT Systems' AI systems design businesses and will work with Sanmina as a U.S.-based new production introduction manufacturing partner. The acquisition of ZT's manufacturing business is expected to be accretive to adjusted earnings per share in the first year after closing, with further EPS accretion expected, said Sanmina. The transaction was unanimously approved by Sanmina's board of directors. It is expected to close near the end of the 2025 calendar year. The Sanmina equity issued to AMD will be subject to a lock-up period of 3 years, which begins at the time of closing. Equity sales will be limited to 33% in the first year, another 33% in the second year and the remaining equity in the third year. Write to Denny Jacob at Regeneron to Buy 23andMe Out of Bankruptcy for $256 Million 'Sesame Street' Finds a New Home on Netflix SEC Chair Signals Investor Access to Private Markets Could Soon Broaden America's Fiscal Situation Threatens the Good Mood on Wall Street Migrant Labor Force Withstands Mass Deportation Push
Yahoo
19-05-2025
- Business
- Yahoo
AMD Shares Tumble Amid Bold $3B Sanmina Infrastructure Deal
AMD shares dipped about 2% on Monday morning after the company announced that it will divest ZT Systems' U.S.-based data center infrastructure manufacturing operations to Sanmina (NASDAQ:SANM) in a transaction valued at $3 billion in cash and stock. Warning! GuruFocus has detected 4 Warning Signs with AMD. As part of the deal, Sanmina will become AMD's preferred manufacturing partner for new product introductions involving cloud rack and AI cluster-scale solutions. The total value of the agreement includes a potential earnout of up to $450 million based on performance targets. AMD said it will retain ZT Systems' rack-scale AI systems design and customer integration teams to help speed up quality and deployment timelines for hyperscale clients. The transaction is expected to close near the end of 2025, subject to regulatory approvals and closing conditions. The move follows AMD's plan, first outlined in August 2024, to find a strategic partner to take over the manufacturing side of ZT Systems' infrastructure unit following its acquisition. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
19-05-2025
- Business
- Yahoo
AMD Shares Tumble Amid Bold $3B Sanmina Infrastructure Deal
AMD shares dipped about 2% on Monday morning after the company announced that it will divest ZT Systems' U.S.-based data center infrastructure manufacturing operations to Sanmina (NASDAQ:SANM) in a transaction valued at $3 billion in cash and stock. Warning! GuruFocus has detected 4 Warning Signs with AMD. As part of the deal, Sanmina will become AMD's preferred manufacturing partner for new product introductions involving cloud rack and AI cluster-scale solutions. The total value of the agreement includes a potential earnout of up to $450 million based on performance targets. AMD said it will retain ZT Systems' rack-scale AI systems design and customer integration teams to help speed up quality and deployment timelines for hyperscale clients. The transaction is expected to close near the end of 2025, subject to regulatory approvals and closing conditions. The move follows AMD's plan, first outlined in August 2024, to find a strategic partner to take over the manufacturing side of ZT Systems' infrastructure unit following its acquisition. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
