Synteq Digital announced it has closed a strategic asset acquisition of HMTech’s operating assets, positioning the company to expand beyond its existing digital compute infrastructure and services into specialized repair and refurbishment for high-value compute hardware, including GPUs used in high-performance computing and AI workloads.
The company said the HMTech assets being acquired include the operating business, specialized computer hardware repair facilities, and two data center sites in Texas with current and expansion capacity of up to 30MW. Synteq added that the HMTech transaction, along with its previously announced strategic real estate acquisition involving Horizon Kinetics and FRMO Corp., represents a significant expansion of its vertically integrated service capabilities, with a majority of the consideration for the HMTech acquisition settled in equity.
Synteq said HMTech’s technical operations in ASIC repairs will serve as the foundation for a new GPU Repair and Refurbishment Division, enabling Synteq to address rising demand for maintenance across HPC and AI hardware, extend the lifecycle of critical compute assets, and expand access to lower-cost hardware for its own scaling HPC offering.
As part of the transaction, Synteq said most of HMTech’s management and employees will join Synteq, and that HMTech CEO Gerald Wilkie will join Synteq’s leadership team as Vice President of Mining Site Development to support the transition and broader site development tied to Synteq’s growing data center footprint.
Keefe, Bruyette & Woods (KBW), a Stifel company, served as financial advisor to Synteq in connection with the transaction, and Cozen O’Connor LLP served as legal advisor, the company said. Synteq also noted that completion of the transaction is subject to customary closing conditions.
KEY QUOTES
“This acquisition is at a strategic moment for Synteq. By combining HMTech’s world-class technical operations with strategic real estate in Texas and North Carolina, we are securing both the talent and the physical footprint needed to dominate the next phase of digital infrastructure. We are moving into comprehensive lifecycle management for high-value compute hardware, including GPUs. We’re not abandoning our foundation, but expanding our offering to become a leader in the digital compute services offering.”
Taras Kulyk, Chief Executive Officer, Synteq Digital
“Joining forces with Synteq provides HMTech with the platform and resources to scale our operations at a pace that wouldn’t be possible independently. We have built a reputation for technical excellence at all of our sites, and by integrating with Synteq’s global footprint, we can now offer our specialized repair and refurbishment services, specifically for GPUs and HPC hardware, to a much broader market. I look forward to working with Taras and the team to build the premier technical services provider in the industry.”
Gerald Wilkie, Chief Executive Officer, HMTech
“We have watched Synteq execute on its strategy with precision and are thrilled to, once again, convert our relationship from partner to shareholder. This transaction allows us to contribute our real assets to a dynamic operating business that is well-positioned to capitalize on the secular trends in digital compute and AI. We look forward to supporting the team as they execute this next phase of growth.”
Murray Stahl, Chief Executive Officer, Horizon Kinetics
