AMD agrees to buy server provider ZT Systems for US$4.9 billion
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Advanced Micro Devices Inc. (Santa Clara, Calif.) has agreed to buy ZT Systems Inc. (Secaucus, New Jersey), a vendor of computer hardware for the datacenter, for US$4.9 billion in cash and stock.
However, AMD said it would be seeking a partner to help it acquire ZT Systems’ infrastructure manufacturing business in New Jersey. The acquisition price includes a US$400 million payment that is dependent on post-closing milestones.
AMD is best known as an x86 and AI processor chip vendor. The acquisition is expected to help the company compete with rival Nvidia in addressing what is reportedly going to be a US$400 billion data center AI acceleration market in 2027.
The deal has been approved unanimously by the AMD board of directors and it is expected to close in 1H25 subject to certain regulatory approvals and other customary closing conditions.
“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,” said AMD chair and CEO Lisa Su, in a statement.
“This acquisition also builds on the investments we have made to accelerate our AI hardware and software roadmaps. Combining our high-performance Instinct AI accelerator, EPYC CPU, and networking product portfolios with ZT Systems’ industry-leading data center systems expertise will enable AMD to deliver end-to-end data center AI infrastructure at scale with our ecosystem of OEM and ODM partners.”
Following the closing of the deal 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.
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