Semiconductor company Advanced Micro Devices (AMD) announced in early April that it will purchase distributed services platform maker Pensando in a $1.9 billion deal, excluding working capital and other adjustments. The sale is expected to close in the second quarter.
The purchase will help AMD address increasing demand for a next-generation data center, expanding its portfolio of products with a high-performance packet processor and software stack already deployed at scale across cloud and enterprise customers. Pensando’s software will enable AMD to offer compute engines that have been optimized for different workloads.
“To build a leading-edge data center with the best performance, security, flexibility, and lowest total cost of ownership requires a wide range of compute engines,” AMD Chair and Chief Executive Officer Lisa Su said in a statement. “The Pensando team brings world-class expertise and a proven track record of innovation at the chip, software, and platform level, which expands our ability to offer leadership solutions for our cloud, enterprise, and edge customers.”
The Pensando team will join AMD as part of the Data Center Solutions Group, led by AMD Senior Vice President Forrest Norrod.
“In less than five years, Pensando has assembled a best-in-class engineering team that are experts in building systems together with a rich, deep ecosystem of partners and customers who have currently deployed over 100,000 Pensando platforms into production. Joining together with AMD will help accelerate growth in our core business and enable us to pursue a much larger customer base across more markets,” said Pensando CEO Prem Jain.
DBO Partners is acting as financial advisor and Latham & Watkins as legal advisor to AMD. Centerview Partners is acting as financial advisor and Wilson Sonsini Goodrich & Rosati as legal counsel for Pensando.
