— Stra­te­gic acqui­si­ti­on to pro­vi­de AMD with indus­try-lea­ding sys­tems exper­ti­se to acce­le­ra­te deploy­ment of opti­mi­zed rack-sca­le solu­ti­ons addres­sing $400 bil­li­on data cen­ter AI acce­le­ra­tor oppor­tu­ni­ty in 2027 —

• ZT Sys­tems, a lea­ding pro­vi­der of AI and gene­ral pur­po­se com­pu­te infra­struc­tu­re for the world’s lar­gest hypers­ca­le pro­vi­ders, brings exten­si­ve AI sys­tems exper­ti­se that com­ple­ments AMD sili­con and soft­ware capabilities 
• Addi­ti­on of world-class design and cus­to­mer ena­blem­ent teams to acce­le­ra­te deploy­ment of AMD AI rack sca­le sys­tems with cloud and enter­pri­se customers 
• AMD to seek stra­te­gic part­ner to acqui­re ZT Sys­tems’ indus­try-lea­ding manu­fac­tu­ring business 
• Tran­sac­tion expec­ted to be accre­ti­ve on a non-GAAP basis by the end of 2025

SANTA CLARA, Calif., Aug. 19, 2024 (GLOBE NEWSWIRE) — AMD (NASDAQ: AMD) today announ­ced the sig­ning of a defi­ni­ti­ve agree­ment to acqui­re ZT Sys­tems, a lea­ding pro­vi­der of AI infra­struc­tu­re for the world’s lar­gest hypers­ca­le com­pu­ting com­pa­nies. The stra­te­gic tran­sac­tion marks the next major step in AMD’s AI stra­tegy to deli­ver lea­der­ship AI trai­ning and infe­ren­cing solu­ti­ons based on inno­vat­ing across sili­con, soft­ware and sys­tems. ZT Sys­tems’ exten­si­ve expe­ri­ence desig­ning and opti­mi­zing cloud com­pu­ting solu­ti­ons will also help cloud and enter­pri­se cus­to­mers signi­fi­cant­ly acce­le­ra­te the deploy­ment of AMD-powered AI infra­struc­tu­re at scale.

AMD has agreed to acqui­re ZT Sys­tems in a cash and stock tran­sac­tion valued at $4.9 bil­li­on, inclu­si­ve of a con­tin­gent pay­ment of up to $400 mil­li­on based on cer­tain post-clo­sing mile­sto­nes. AMD expects the tran­sac­tion to be accre­ti­ve on a non-GAAP basis by the end of 2025.

“Our acqui­si­ti­on of ZT Sys­tems is the next major step in our long-term AI stra­tegy to deli­ver lea­der­ship trai­ning and infe­ren­cing solu­ti­ons that can be rapidly deploy­ed at sca­le across cloud and enter­pri­se cus­to­mers,” said AMD Chair and CEO Dr. Lisa Su. “ZT adds world-class sys­tems design and rack-sca­le solu­ti­ons exper­ti­se that will signi­fi­cant­ly streng­then our data cen­ter AI sys­tems and cus­to­mer ena­blem­ent capa­bi­li­ties. This acqui­si­ti­on also builds on the invest­ments we have made to acce­le­ra­te our AI hard­ware and soft­ware road­maps. Com­bi­ning our high-per­for­mance Instinct AI acce­le­ra­tor, EPYC CPU, and net­wor­king pro­duct port­fo­li­os with ZT Sys­tems’ indus­try-lea­ding data cen­ter sys­tems exper­ti­se will enable AMD to deli­ver end-to-end data cen­ter AI infra­struc­tu­re at sca­le with our eco­sys­tem of OEM and ODM partners.”

Head­quar­te­red in Secau­cus, New Jer­sey, ZT Sys­tems has more than 15 years of expe­ri­ence desig­ning and deploy­ing data cen­ter AI com­pu­te and sto­rage infra­struc­tu­re at sca­le for the lar­gest glo­bal cloud com­pa­nies. ZT Sys­tems’ design, inte­gra­ti­on, manu­fac­tu­ring and deploy­ment capa­bi­li­ties have made them one of the lea­ding pro­vi­ders of AI trai­ning and infe­rence infrastructure.

“We are exci­ted to join AMD and tog­e­ther play an even lar­ger role desig­ning the AI infra­struc­tu­re that is defi­ning the future of com­pu­ting,” said Frank Zhang, CEO of ZT Sys­tems. “For almost 30 years we have evol­ved our busi­ness to beco­me a lea­ding pro­vi­der of cri­ti­cal com­pu­ting and sto­rage infra­struc­tu­re for the world’s lar­gest cloud com­pa­nies. AMD shares our visi­on for the important role our tech­no­lo­gy and our peo­p­le play desig­ning and buil­ding the com­pu­ting infra­struc­tu­re powe­ring the lar­gest data cen­ters in the world.”

Fol­lo­wing tran­sac­tion clo­se, ZT Sys­tems will join the AMD Data Cen­ter Solu­ti­ons Busi­ness Group. ZT CEO Frank Zhang will lead the manu­fac­tu­ring busi­ness and ZT Pre­si­dent Doug Huang will lead the design and cus­to­mer ena­blem­ent teams, both report­ing to AMD Exe­cu­ti­ve Vice Pre­si­dent and Gene­ral Mana­ger For­rest Nor­rod. AMD will seek a stra­te­gic part­ner to acqui­re ZT Sys­tems’ indus­try-lea­ding U.S.-based data cen­ter infra­struc­tu­re manu­fac­tu­ring business.

The acqui­si­ti­on of ZT Sys­tems marks the latest in a series of invest­ments by AMD to signi­fi­cant­ly streng­then the company’s AI capa­bi­li­ties. In the last 12 months, in addi­ti­on to incre­asing orga­nic R&D acti­vi­ties, AMD has inves­ted more than $1 bil­li­on to expand the AMD AI eco­sys­tem and streng­then the company’s AI soft­ware capabilities.

Addi­tio­nal Tran­sac­tion Details 
The tran­sac­tion has been unani­mously appro­ved by the AMD Board of Direc­tors. The acqui­si­ti­on is curr­ent­ly expec­ted to clo­se in the first half of 2025, sub­ject to cer­tain regu­la­to­ry appr­ovals and other cus­to­ma­ry clo­sing conditions.

Con­fe­rence Call and Web­cast Details 
AMD will hold a con­fe­rence call for the finan­cial com­mu­ni­ty at 8:30 am EDT today to dis­cuss the tran­sac­tion. AMD will pro­vi­de a real-time audio broad­cast of the tele­con­fe­rence on the Inves­tor Rela­ti­ons page of its web­site at ir.amd.com. The web­cast will be available for 12 months after the con­fe­rence call.

Advi­sors 
Citi is acting as exclu­si­ve finan­cial advi­sor to AMD and Lat­ham & Wat­kins LLP is ser­ving as its legal advi­sor. Gold­man Sachs & Co. LLC is acting as exclu­si­ve finan­cial advi­sor to ZT Sys­tems and Paul, Weiss, LLP is ser­ving as its legal advisor.

About AMD 
For more than 50 years AMD has dri­ven inno­va­ti­on in high-per­for­mance com­pu­ting, gra­phics and visua­liza­ti­on tech­no­lo­gies. AMD employees are focu­sed on buil­ding lea­der­ship high-per­for­mance and adap­ti­ve pro­ducts that push the boun­da­ries of what is pos­si­ble. Bil­li­ons of peo­p­le, lea­ding For­tu­ne 500 busi­nesses and cut­ting-edge sci­en­ti­fic rese­arch insti­tu­ti­ons around the world rely on AMD tech­no­lo­gy dai­ly to impro­ve how they live, work and play. For more infor­ma­ti­on about how AMD is enab­ling today and inspi­ring tomor­row, visit the AMD (NASDAQ: AMD) web­site, blog, Lin­ke­dIn and X pages.

About ZT Sys­tems 
ZT Sys­tems is a lea­ding sup­pli­er of hypers­ca­le ser­ver solu­ti­ons for cloud com­pu­ting and arti­fi­ci­al intel­li­gence. With over 29 years of expe­ri­ence, ZT Sys­tems is head­quar­te­red in Secau­cus, NJ. Glo­bal manu­fac­tu­ring span­ning the US, EMEA and APAC helps ZT Sys­tems deli­ver on our mis­si­on of empowe­ring our digi­tal world with the most advan­ced tech­no­lo­gy infra­struc­tu­re for cloud and AI. Learn more at ztsystems.com.

Cau­tio­na­ry State­ment 
The state­ments in this press release include for­ward-loo­king state­ments con­cer­ning Advan­ced Micro Devices, Inc. (AMD), ZT Sys­tems, the pro­po­sed tran­sac­tion descri­bed her­ein and other mat­ters. For­ward-loo­king state­ments may dis­cuss goals, inten­ti­ons and expec­ta­ti­ons as to future plans, trends, events, results of ope­ra­ti­ons or finan­cial con­di­ti­on, or other­wi­se, based on cur­rent beliefs and invol­ve num­e­rous risks and uncer­tain­ties that could cau­se actu­al results to dif­fer mate­ri­al­ly from expec­ta­ti­ons. For­ward-loo­king state­ments speak only as of the date they are made or as of the dates indi­ca­ted in the state­ments and should not be reli­ed upon as pre­dic­tions of future events, as the­re can be no assu­rance that the events or cir­cum­s­tances reflec­ted in the­se state­ments will be achie­ved or will occur. For­ward-loo­king state­ments can often, but not always, be iden­ti­fied by the use of for­ward-loo­king ter­mi­no­lo­gy inclu­ding “belie­ves,” “expects,” “may,” “will,” “should,” “seeks,” “intends,” “plans,” “pro for­ma,” “esti­ma­tes,” “anti­ci­pa­tes,” “desi­gned,” or the nega­ti­ve of the­se words and phra­ses, other varia­ti­ons of the­se words and phra­ses or com­pa­ra­ble ter­mi­no­lo­gy. The for­ward-loo­king state­ments in this press release rela­te to, among other things, data cen­ter AI acce­le­ra­tor oppor­tu­ni­ty, obtai­ning appli­ca­ble regu­la­to­ry appr­ovals, satis­fy­ing other clo­sing con­di­ti­ons to the tran­sac­tion, the expec­ted timing of the tran­sac­tion, and the inte­gra­ti­on of the busi­nesses, sale of ZT Sys­tems’ manu­fac­tu­ring busi­ness, and the expec­ted bene­fits, accre­ti­on, syn­er­gies and growth to result the­r­e­f­rom. The­se for­ward-loo­king state­ments invol­ve risks and uncer­tain­ties that could cau­se actu­al results to dif­fer mate­ri­al­ly from tho­se con­tem­pla­ted by the state­ments. The­se risks include, among other things: fail­ure to obtain appli­ca­ble regu­la­to­ry appr­ovals in a time­ly man­ner or other­wi­se; fail­ure to satis­fy other clo­sing con­di­ti­ons to the tran­sac­tion or to com­ple­te the tran­sac­tion on anti­ci­pa­ted terms and timing; nega­ti­ve effects of the announce­ment of the tran­sac­tion; risks that the busi­nesses will not be inte­gra­ted suc­cessful­ly, the abili­ty of AMD to sell ZT Sys­tems’ manu­fac­tu­ring busi­ness on a time­ly basis or at all, or that AMD will not rea­li­ze expec­ted bene­fits, cost savings, accre­ti­on, syn­er­gies and/or growth, or that such bene­fits may take lon­ger to rea­li­ze than expec­ted; the risk that dis­rup­ti­ons from the tran­sac­tion will harm busi­ness plans and ope­ra­ti­ons; risks rela­ting to unan­ti­ci­pa­ted cos­ts of inte­gra­ti­on and sale of ZT Sys­tems’ manu­fac­tu­ring busi­ness; signi­fi­cant tran­sac­tion, inte­gra­ti­on and sepa­ra­ti­on cos­ts, or dif­fi­cul­ties and/or unknown or ine­sti­ma­ble lia­bi­li­ties in con­nec­tion with the tran­sac­tion or sale of ZT Sys­tems’ manu­fac­tu­ring busi­ness; rest­ric­tions during the pen­den­cy of the tran­sac­tion that may impact the abili­ty to pur­sue cer­tain busi­ness oppor­tu­ni­ties or stra­te­gic tran­sac­tions; the poten­ti­al impact of the announce­ment or con­sum­ma­ti­on of the tran­sac­tion or sale of ZT’s System’s manu­fac­tu­ring busi­ness on AMD’s, ZT Sys­tems’ or the com­bi­ned company’s rela­ti­onships with sup­pli­ers, cus­to­mers, employees and regu­la­tors; and demand for AMD’s, ZT Sys­tems’, or the com­bi­ned company’s pro­ducts.  For a dis­cus­sion of fac­tors that could cau­se actu­al results to dif­fer mate­ri­al­ly from tho­se con­tem­pla­ted by for­ward-loo­king state­ments, see the sec­tion cap­tio­ned “Risk Fac­tors” in AMD’s Annu­al Report on Form 10‑K for the fis­cal year ended Decem­ber 30, 2023, sub­se­quent Quar­ter­ly Reports on Form 10‑Q and other filings with the SEC. While the list of fac­tors pre­sen­ted here is con­side­red repre­sen­ta­ti­ve, no such list should be con­side­red to be a com­ple­te state­ment of all poten­ti­al risks and uncer­tain­ties. Unlis­ted fac­tors may pre­sent signi­fi­cant addi­tio­nal obs­ta­cles to the rea­liza­ti­on of for­ward loo­king state­ments. AMD does not assu­me, and her­eby dis­claims, any obli­ga­ti­on to update for­ward-loo­king state­ments, except as may be requi­red by law.

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