March 1, 2012 – AMD announced it plans to pay $334 million for high-bandwidth microserver provider SeaMicro in a deal meant to bring “disruptive” technology to its cloud-based data center offerings.
SeaMicro deals with network, server, software and storage integration technology, or “fabric,” and system-level design capabilities for CPU design, virtualization and supercomputing. Its recent server architecture enables purpose-built scaling for infrastructure and unstructured workloads like Web content, social data and video.
AMD stated in a news release on the proposed deal that it plans to combine SeaMicro technology specifically to address data center complexity, cost and energy consumption. A release of its AMD Opteron processor-based solutions backed by SeaMicro technology is planned for the second half of 2012.
AMD CEO and President Rory Read said in a news release on the acquisition that SeaMicro’s technology for efficiencies at large data centers and in cloud environments position AMD to “attack the fastest growing segment of the server market.”
The move into cutting-edge server technology comes as AMD has been aiming to gain ground on its larger main rival, Intel, over the last two years.
Founded five years ago in Sunnyvale, Calif., SeaMicro has approximately 80 employees. In 2009, SeaMicro received $9.3 million in funds from the American Recovery and Reinvestment Act in the largest U.S. Department of Energy grant doled out to a server company.
The deal is subject to closing conditions. AMD stated the payout will be accretive to earnings after 2012 and that a cash portion of $281 million in the deal will be covered by existing reserves.