https://www.barrons.com/articles/amd-stock-price-pensando-51649075903
Advanced Micro Devices reached a deal to acquire cloud-services provider Pensando Systems for $1.9 billion in a bid to continue expanding its data center capabilities.
Shares of Advanced Micro Devices (ticker: AMD ) were up 0.5% to $107.63 in trading Monday. Pensando isn’t publicly traded.
AMD will pay approximately $1.9 billion before working capital and other adjustments, the company said Monday.
Pensando’s distributed services platform is already deployed at scale across cloud and enterprise customers, including Goldman Sachs , IBM Cloud, Microsoft Azure and Oracle Cloud. The platform includes a programmable packet processor that can accelerate networking, security, storage, and other services for cloud and enterprise applications, the companies said.
“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,” said Pensando CEO Prem Jain. “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.”
The acquisition is expected to close in the second quarter of 2022. Upon closing, Jain will join AMD as part of the Data Center Solutions Group.
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