In a strategic move to enhance its position in the data center market, Advanced Micro Devices Inc. (AMD) has agreed to acquire server manufacturer ZT Systems in a deal valued at $4.9 billion. The acquisition, which combines cash and stock, aims to strengthen AMD’s capabilities in data center technology and intensify its competition with Nvidia Corp.
ZT Systems, headquartered in Secaucus, New Jersey, will be integrated into AMD’s Data Center Solutions Business Group. AMD plans to retain the design and customer teams from ZT Systems while seeking to sell the manufacturing division.
The announcement was well-received by AMD investors, with the company’s shares rising by up to 4.2% in New York trading on Monday. The acquisition deal is structured with 75% cash and 25% AMD common stock.
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ZT Systems, a private company, brings extensive expertise in providing server solutions for major data center operators—customers who are heavily investing in new artificial intelligence technologies.
Read More: AMD Acquires ZT Systems for $4.9 Billion in Bid to Compete with Nvidia