AMD strikes a deal to sell ZT Systems’ server-manufacturing business for $3B
AMD has sold ZT Systems' server-manufacturing business to Sanmina for $3 billion, comprising $2.25 billion in cash and a $300 million premium.
MAIN POINTS
- AMD completed the sale of ZT Systems' server-manufacturing business.
- The transaction is valued at $3 billion, combining cash and stock.
- Sanmina, an electronic manufacturing services company, is the buyer.
- The deal includes a $300 million premium with 50% in cash.
TAKEAWAYS
- AMD is divesting its server-manufacturing segment to focus on core operations.
- Sanmina expands its capabilities with the acquisition of ZT Systems' business.
- The transaction strengthens AMD's financial position with significant cash influx.
- This strategic move aligns with AMD's long-term business objectives.