Prnewswireยท2025-05-19 11:30Core Viewpoint - Sanmina Corporation has announced a definitive agreement to acquire the data center infrastructure manufacturing business of ZT Systems from AMD for a total consideration of up to $3 billion, which includes $2.55 billion in cash and equity plus $450 million in contingent consideration, enhancing its position in the Cloud and AI infrastructure market [1][7]. Transaction Details - The acquisition price consists of $2.25 billion in cash for assets, a $300 million premium split between cash and equity, and a $450 million contingent consideration based on future financial performance [7][8]. - Sanmina has secured committed financing of $2.5 billion from Bank of America to facilitate the transaction [9]. Strategic Rationale - The acquisition is expected to double Sanmina's revenue scale within three years, significantly enhancing its position in the fast-growing Cloud and AI end-market [11]. - Sanmina aims to deepen relationships with existing customers and attract new ones through ZT Systems' established connections with hyperscalers [11]. - The integration of ZT Systems' advanced manufacturing capabilities, including liquid cooling technologies, will complement Sanmina's existing operations and expand its footprint in Europe [11]. Expected Benefits - The transaction is anticipated to be accretive to Sanmina's non-GAAP EPS in the first year post-close, with further accretion expected as synergies are realized [11]. - The combination is projected to generate operational efficiencies and enhance Sanmina's capabilities as a leading end-to-end manufacturing partner for mission-critical technologies [11]. Partnership with AMD - AMD will retain ZT Systems' AI systems design businesses and collaborate with Sanmina as its preferred new product introduction (NPI) manufacturing partner, focusing on accelerating the deployment of AMD AI solutions [4][5].