AMD announced the signing agreement to acquire ZT Systems, a hyperscale server solution provider, for USD 4.9 billion.
AMD has agreed to acquire ZT Systems in a cash and stock transaction valued at $4.9 billion, including a contingent payment of up to $400 million based on certain post-closing milestones. AMD expects the transaction to be accretive on a non-GAAP basis by the end of 2025.
Dr. Lisa Su, AMD Chair and CEO, said, “Our acquisition of ZT Systems is the next major step in our long-term AI strategy to deliver leadership training and inferencing solutions that can be rapidly deployed at scale across cloud and enterprise customers.”
This acquisition marks the next major step in AMD’s AI strategy to develop AI-led solutions based on innovating across silicon, software, and systems.
ZT Systems’ vast experience designing and optimizing cloud computing solutions will also help cloud and enterprise customers significantly accelerate the deployment of AMD-powered AI infrastructure at scale.
Based in Secaucus, New Jersey, ZT Systems has more than 15 years of experience designing and deploying data center AI compute and storage infrastructure at scale for the largest global cloud companies.
“We are excited to join AMD and together play an even larger role designing the AI infrastructure that is defining the future of computing,” said Frank Zhang, CEO of ZT Systems. “For almost 30 years, we have evolved our business to become a leading provider of critical computing and storage infrastructure for the world’s largest cloud companies. AMD shares our vision for the important role our technology and our people play in designing and building the computing infrastructure powering the largest data centers in the world.”
ZT Systems will join the AMD Data Center Solutions Business Group. ZT CEO Frank Zhang will lead the manufacturing business, and ZT President Doug Huang will lead the design and customer enablement teams, reporting to AMD Executive Vice President and General Manager Forrest Norrod.
The acquisition of ZT Systems marks the latest in a series of investments by AMD to significantly strengthen the company’s AI capabilities. In the last 12 months, in addition to increasing organic R&D activities, AMD has invested more than $1 billion to expand the AMD AI ecosystem and software capabilities.
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