AMD (NASDAQ:AMD) -2.3% premarket, to sell ZT Systems’ U.S.-headquartered data center infrastructure manufacturing business to Sanmina (NASDAQ:SANM) for $3 billion in cash and stock.
As part of the transaction, Sanmina becomes a preferred new product introduction (NPI) manufacturing partner for AMD cloud rack and cluster-scale AI solutions.
The deal value includes a contingent payment of up to $450 million.
AMD retains ZT Systems’ rack-scale AI solutions design and customer enablement expertise to accelerate quality and time-to-deployment for cloud customers
The transaction is expected to close near the end of 2025.
The intent to seek a strategic partner to acquire ZT Systems’ data center infrastructure manufacturing business was announced in August 2024 at the time of the original acquisition announcement.
Source: Press Release
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