AMD wraps up £209m purchase of SeaMicro

Summary:Chipmaker AMD has completed its $334m (£209m) acquisition of server maker SeaMicro, a longtime partner of rival processor giant Intel.With the completion of the deal on Monday, SeaMicro becomes AMD Data Center Server Solutions.

Chipmaker AMD has completed its $334m (£209m) acquisition of server maker SeaMicro, a longtime partner of rival processor giant Intel.

With the completion of the deal on Monday, SeaMicro becomes AMD Data Center Server Solutions. The unit, which is expected to release systems based on Opteron processors before the end of the year, will boost AMD's prospects in selling to businesses with cloud-driven datacentres, the company said.

"The combination of [SeaMicro's fabric] technology with our processor design expertise greatly enhances our ability to attack the fastest-growing portion of the server market,” Lisa Su, general manager for AMD's global business units, said in a statement.

For many years, SeaMicro has provided microservers built around Intel's Xeon and Atom chips, so the purchase marks a big shift in its approach. After the acquisition was announced on 29 February, Intel told GigaOm it had been offered the chance to buy the Sunnyvale, California-based microserver specialist, but passed on the offer.

AMD paid $293m in cash for the server maker, with the remainder in shares and option. It said in February it did not expect to see an earnings benefit from the purchase until after its 2012 financial year.

Topics: Tech Industry

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Karen Friar is news editor for ZDNet in the UK, based in London. She has been in journalism since the last century, starting out in film journalism in San Francisco, before making the switch to tech coverage at ZDNet.com. Next came a move to CNET News.com, where she looked after west coast coverage of business technology, specialising in... Full Bio

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