AMD to buy microserver startup SeaMicro

SAN FRANCISCO—Advanced Micro Devices Inc. will acquire microserver startup SeaMicro Inc. in a deal worth $334 million, under the terms of a definitive agreement between the two companies announced Wednesday (Feb. 29).

AMD (Sunnyvale, Calif.) said the deal would accelerate its strategy to deliver server technology to OEM customers serving cloud-center data centers.

SeaMicro, a startup founded in 2007, formerly built only servers with Intel Corp.'s Atom processors. Last month the company announced a new server based on Intel's Xeon processor.

AMD said about $281 million of the $334 million purchase price would be paid in cash.

"By acquiring SeaMicro, we are accelerating AMD’s transformation into an agile, disruptive innovator capable of staking a data center leadership position," said Rory Read, AMD's president and CEO, in a statement.