May. 19 at 5:41 PM
$SANM: Sanmina is trading lower following the announcement of its
$3.0 bln acquisition of ZT Systems' data center infrastructure manufacturing business from Advanced Micro Devices (AMD), reflecting investor concerns surrounding integration risks, the significant amount of new debt obtained to finance the deal, and the issuance of equity to pay for part of the premium. ZT Systems, acquired by AMD for
$4.9 bln less than two months ago, is a supplier of hyperscale server solutions, specializing in the design, integration, manufacturing, and deployment of cloud and AI infrastructure for major clients like Amazon (AMZN) Web Services and Microsoft (MSFT) Azure.
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