“Rollover equity is a common feature of business sale transactions. There are several issues to consider when a business seller will be receiving a portion of the purchase price in rollover equity, including what are the rights and obligations that are tied to the rollover, and how and when can this rollover equity get liquidated.” -Shruti Gurudanti, Rose Law Group partner and director of corporate transactions
By Kyt Dotson | Sillicon Angle
Advanced Micro Devices Inc. announced today that it agreed to acquire ZT Systems, a provider of artificial intelligence infrastructure for hyperscale computing providers, to expand solutions for running AI models at large scale.
As part of the deal, AMD said it agreed to pay $4.9 billion for ZT Systems in a mix of cash and stock. Pending certain post-closing performance milestones another $400 million will also be paid out.
The semiconductor manufacturer said that it planned to incorporate the hyperscale provider’s AI and general compute infrastructure to accelerate AI deployments for cloud and enterprise customers.
Headquartered in Secaucus, New Jersey, ZT Systems was founded in 1994, provides complex compute, storage and accelerator solutions. The company works with large companies and chipmakers, including Nvidia Corp. and Intel Corp. to deliver its services to cloud and enterprise customers.
“ZT adds world-class systems design and rack-scale solutions expertise that will significantly strengthen our data center AI systems and customer enablement capabilities,” said AMD Chair and Chief Executive Dr. Lisa Su. “This acquisition also builds on the investments we have made to accelerate our AI hardware and software roadmaps.”
