AMD to Acquire ZT Systems for $4.9 Billion in Cash-Stock Deal, Rivaling Nvidia

Aug 19, 2024, 10:42 AM

Advanced Micro Devices (AMD) has announced a definitive agreement to acquire ZT Systems, a New Jersey-based designer of data-center equipment, for approximately $4.9 billion in a 75%/25% cash and stock deal. This strategic acquisition aims to bolster AMD's capabilities in artificial intelligence (AI) and data center infrastructure, positioning it as a stronger competitor against Nvidia in the AI market. The deal includes 8.34 million AMD shares and $3.375 billion in cash, with a $300 million termination fee and up to $400 million in milestone payments. AMD expects the acquisition to be accretive on a non-GAAP basis by the end of 2025, with the transaction expected to close in 2024. ZT Systems' expertise in hyperscale systems design will enhance AMD's ability to provide comprehensive AI solutions, including server racks and infrastructure for large data centers.