AMD Furnishes Details on ZT Systems Divestiture Completion
Summary
On October 27, 2025, AMD announced the completion of the divestiture of its ZT Systems U.S.-headquartered data center infrastructure manufacturing business to Sanmina, as detailed in a press release (Ex. 99.1). * Sanmina issued 1,151,052 shares of its common stock and paid $2.4 billion in cash to the Seller. * The Seller is eligible for up to $450 million in contingent cash consideration. * AMD retains ZT Systems' design and customer enablement teams. * Sanmina becomes a preferred new product introduction manufacturing partner for AMD.
Why It Matters
This divestiture, involving a $2.4 billion cash payment, stock issuance, and potential contingent consideration, significantly impacts AMD's financial structure and strategic focus. The establishment of Sanmina as a preferred manufacturing partner and AMD's retention of key design teams are crucial for accelerating AMD's AI systems for cloud customers.
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Key Quote
“On the Closing Date, pursuant to the terms of the Purchase Agreement, Sanmina (a) issued to the Seller 1,151,052 shares of Sanmina common stock, and (b) paid, or will cause to be paid, to the Seller $2.”
— From Item 2.01
Filing Details
Reported Items
Additional Information
- CIK Number
- 0000002488
- Filing Date
- Monday, October 27, 2025
- Filing Time
- 12:00 AM UTC
- Form Type
- 8-K
- Materiality Level
- high
- Sentiment
- neutral