WEB AMD Acquires Server Maker ZT Systems for $4.9 Billion
Deal Expansion
WEB AMD announced plans to acquire ZT Systems, a server maker, for $4.9 billion as part of an effort to expand its portfolio. The acquisition is expected to enhance WEB AMD's AI, cloud, and general-purpose computing capabilities.
Under the terms of the agreement, WEB AMD will pay 75% of the purchase price in cash and the remaining 25% in stock. WEB AMD currently has $5.34 billion in cash and short-term investments available.
Strategic Alignment
The acquisition aligns with WEB AMD's strategic goal of expanding its data center business. ZT Systems' rack-scale systems design and manufacturing assets are seen as complementary to WEB AMD's existing offerings.
The deal also positions WEB AMD to compete more effectively with Nvidia, a market leader in AI technology. WEB AMD aims to leverage ZT Systems' expertise to enhance its AI capabilities.
Transaction Details
- Transaction value: $4.9 billion
- Payment method: 75% cash, 25% stock
- Target company: ZT Systems
- Announcement date: August 19, 2023
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