AMD to Acquire SeaMicro : Accelerates Disruptive Server Strategy
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amd acquire seamicro accelerate disruptive server strategy
AMD to Acquire SeaMicro : Accelerates Disruptive <m> Server </m> Strategy
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AMD to Acquire SeaMicro : Accelerates Disruptive <m> Server </m> Strategy
SeaMicro Low - Power , High - Bandwidth Microserver Solutions Set the Stage for AMD ’ s Disruptive Approach To Lead Fast - Growing Cloud Data Center Market
SUNNYVALE , Calif . —2 / 29 / 2012
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 .
AMD Conference Call
AMD will hold a conference call for the financial community at 4 : 45 p . m . EST today to discuss today ’ s announcement .
AMD will provide a real - time audio broadcast of the teleconference on the Investor Relations page of its Web site at www . AMD . com .
The webcast will be available for 10 days after the conference call .