Sanmina Acquires ZT Systems' Manufacturing Business from AMD

Sanmina Corporation has announced the acquisition of the data center infrastructure manufacturing business of ZT Systems from AMD for up to $3 billion, announced in a press release. This strategic move is expected to significantly enhance Sanmina's scale and exposure in the cloud and AI infrastructure markets.

The acquisition involves a purchase price of $2.55 billion in cash and equity, with an additional $450 million contingent on the business's financial performance over the next three years. Sanmina anticipates that the transaction will be accretive to its non-GAAP earnings per share in the first year post-closing.

ZT Systems' manufacturing operations, which include facilities in New Jersey, Texas, and the Netherlands, will bolster Sanmina's capabilities in systems integration and supply chain solutions. The acquisition is expected to double Sanmina's revenue scale within three years, enhancing its relationships with hyperscaler customers and expanding its presence in the cloud and AI end-markets.

As part of the deal, AMD will retain ZT Systems' AI systems design businesses and collaborate with Sanmina as a preferred U.S.-based new product introduction manufacturing partner. This partnership aims to accelerate the deployment of AMD AI rack and cluster-scale systems for cloud customers.