Advanced Micro Devices (AMD) Inc. announced yesterday that it has reached an agreement to acquire SeaMicro for $334 million, of which $281 million will be paid in cash.
The strategy behind this acquisition is to improve cloud based computation while using the energy efficient and high bandwidth microservers of SeaMicro.
“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.”
AMD has reported that a range of different processors and platforms will be launched, by combining the technologies of both the companies helping to reduce the cost consumption, energy utilization, and data center complexity while enhancing the performance. First AMD Opteron processor-based solutions combined with SeaMicro technologies will be revealed in the second half of this year.
IDC predicted that cloud data centers would be the fastest growing part of the server market through 2015 and SeaMicro technologies give pronounced benefits in cloud environments and large data centers.
“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 work as 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.”