AMD completes $334 million SeaMicro acquisition

Summary:AMD has completed its $334 million acquisition of SeaMicro, less than a month since the chip giant suddenly announced its intentions to buy.

AMD said that the £334 million acquisition of specialist server maker SeaMicro has been completed, less than a month after the chip giant paved the way to buying the company.

The acquisition will include $293 million cash.

SeaMicro specialises in low-power, energy-efficient servers. Its first web server managed to hold 256 Intel Atom processors, chips normally reserved for smartphones, into a size smaller than a shoebox.

The deal, announced February 29, will give AMD a path to follow in the low-power server space, and providing a pivotal role in its push for a cloud datacenter business. The move was a surprise, but not to Intel, which reportedly passed on making a similar deal earlier this year after it was "not impressed" by the company's offerings.

ZDNet's Larry Dignan explained that the acquisition was "all about nudging its way into a hot market at Intel's expense." Since Facebook, Google, and other web giants have long sought for slimmed down datacenters in form of smaller, energy saving systems, it nicks away at a market still in development, and could soon challenge the traditional datacenter server model.

ARM began its market challenge by developing chips for low-powered servers, offering as many as 480 cores that consume no more than 600W. The market braces itself for another competitiveness streak, as the battle between ARM-based chips and AMD low-power chips will metaphorically, though likely not literally, begin to heat up.

SeaMicro will become AMD Data Center Server Solutions now the deal has completed.

Related:

Topics: Hardware, Banking, Enterprise Software, Processors, Servers

About

Zack Whittaker writes for ZDNet, CNET, and CBS News. He is based in New York City.

zdnet_core.socialButton.googleLabel Contact Disclosure

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.