AMD (NYSE: AMD) today announced it has signed a definitive agreement to acquire SeaMicro, a pioneer in energy-efficient, high-bandwidth microservers, for approximately $334 million, of which approximately $281 million will be paid in cash. Through the acquisition of SeaMicro, AMD will be accelerating its strategy to deliver disruptive server technology to its OEM customers serving cloud-centric data centers. With SeaMicro's fabric technology and system-level design capabilities, AMD will be uniquely positioned to offer industry-leading server building blocks tuned for the fastest-growing workloads such as dynamic web content, social networking, search and video.
AMD's server technology combined with SeaMicro technology provides customers with a range of processor choices and platforms that can help significantly reduce data center complexity, cost and energy consumption while improving performance. AMD plans to offer the first AMD Opteron processor-based solutions that combine AMD and SeaMicro technology in the second half of 2012. The company remains firmly committed to its traditional server business, and will continue to focus and invest in this area.
"By acquiring SeaMicro, we are accelerating AMD's transformation into an agile, disruptive innovator capable of staking a data center leadership position," said Rory Read, president and CEO, AMD. "SeaMicro is a pioneer in low-power server technology. The unmatched combination of AMD's processing capabilities, SeaMicro's system and fabric technology, and our ambidextrous technology approach uniquely positions AMD with a compelling, differentiated position to attack the fastest growing segment of the server market."
SeaMicro technologies offer substantial advantages in large data center and cloud environments. Cloud data centers are projected to be the fastest growing segment of the server market through 2015, according to IDC1. Current systems featuring SeaMicro technology typically use one quarter the power and take one sixth the space of traditional servers with the same compute performance, yet deliver up to 12 times the bandwidth per core2.
Foremost among SeaMicro's innovations is their supercompute fabric, which connects thousands of processor cores, memory, storage and input/output traffic. SeaMicro's fabric supports multiple processor instruction sets. SeaMicro solutions are currently deployed in multiple sites across the world. AMD will continue to support all current SeaMicro customers while accelerating plans to deliver new platforms that combine AMD and SeaMicro technology and enable AMD's OEM partners to bring differentiated solutions to market.
"Cloud computing has brought a sea change to the data center--dramatically altering the economics of compute by changing the workload and optimal characteristics of a server," said Andrew Feldman, SeaMicro CEO, who will become general manager of AMD's newly created Data Center Server Solutions business. "SeaMicro was founded to dramatically reduce the power consumed by servers, while increasing compute density and bandwidth. By becoming a part of AMD, we will have access to new markets, resources, technology, and scale that will provide us with the opportunity to work tightly with our OEM partners as we fundamentally change the server market."
The acquisition does not change AMD's 2012 financial guidance and the transaction is expected to be accretive to earnings after 2012. AMD will fund the cash portion of the acquisition with existing cash reserves.
Latest News Posts
- The new Zelda game takes up nearly half Switch's storage
- Zelda: Breath of the Wild - 900p docked, 720p undocked
- Super Mario Odyseey hits 7 million views on YouTube
- Mass Effect: Andromeda will support HDR10, Dolby Vision
- GIGABYTE's Aorus brand is ready for next-gen GPUs
- Intel 82579v - Code 10 - media disconnected
- 80mm or 92mm Fan for D8000-3
- p67a-ud3-b3 with u1d UEFI bios: pcie 4x works as 1x
- Can't Find PC-O10 Riser Kit
- Help overclocking x5460 / GA-EP43-UD3L past 3.99ghz
- BIOSTAR announces Z270 motherboard lineup
- Immersion and Nintendo enter into agreement to bring Immersion's TouchSense Technology to the Nintendo Switch System
- LucidSound invites Nintendo Switch gamers to a new standard of powered audio with the LS20 Amplified Universal Gaming Headset
- Opera Neon envisions the future of web browsers
- Nintendo Switch launches March 3 at $299.99