Chipmaker AMD agreed on Monday to sell the data center infrastructure manufacturing business of recently acquired ZT Systems to Sanmina in a $3 billion deal, making the contract manufacturer its partner for building AI computing systems.
Under the terms of the agreement, Sanmina will pay $2.25 billion in cash, along with $300 million premium consisting of 50 per cent cash and 50 per cent equity.
The deal also includes a $450 million contingent consideration based on financial performance of the business over the next three years.
AMD closed its acquisition of ZT Systems for $4.9 billion in March and had announced plans to break off its server manufacturing business and sell it once the deal closes.
Shares of AMD were down 2.7 per cent in premarket trading.
