AMD Acquires SeaMicro For $334 Million

Posted Mar 1, 2012

Advanced Micro Devices has announced that they have acquired SeaMicro for $334 million, including $281 million in cash. SeaMicro is known for having clients like Facebook and Google. SeaMicro makes energy efficient “microservers.” They use low-power chips from Intel and Samsung to perform real-time data analysis jobs by creating a “fabric” of multiple servers and data storage units.

AMD plans on allowing SeaMicro to work independently after the deal closes this month. AMD will be integrating SeaMicro’s fabric technology to their own higher-power Opteron processors. Those new products are expected at the end of the year. SeaMicro’s technology works in microservers with one-quarter of the power and one-sixth of the space used by conventional machines.

This is AMD’s largest acquisitions since Rory P. Read has been CEO of the company. He joined AMD this past August. AMD acknowledged that they paid a high price for SeaMicro, but they were able to win a bidding war against other interested parties. Using SeaMicro, AMD will offer servers that compete with HP and Dell servers.