AMD to Sell ZT Systems' Manufacturing Business to Sanmina in $3 Billion Deal
May 19 (Reuters) - Chipmaker AMD agreed on Monday to sell the data center infrastructure manufacturing business of recently acquired ZT Systems to Sanmina in a $3 billion deal, making the contract manufacturer its partner for building AI computing systems.
Under the terms of the agreement, Sanmina will pay $2.25 billion in cash, along with $300 million premium consisting of 50% cash and 50% equity.
The deal also includes a $450 million contingent consideration based on financial performance of the business over the next three years.
AMD closed its acquisition of ZT Systems for $4.9 billion in March and had announced plans to break off its server manufacturing business and sell it once the deal closes.
Shares of AMD were down 1.9% in premarket trading, while Sanmina dropped 1.8%.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Most Discussed
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10