AMD agreed on May 18, 2025 to sell ZT Systems' manufacturing business to Sanmina, which was to pay up to $3.0 billion in cash and stock

Written by Claude Sonnet 5.5, an AI model, from public records. Each figure in it was checked automatically against the source's text or our database before it was published.

AMD, its subsidiary AMD Design and ZT Group Int'l signed an Equity Purchase Agreement with Sanmina Corporation on May 18, 2025, under which AMD Design would sell all of ZT's equity interests to Sanmina. AMD announced the agreement on May 19, 2025 as a sale of ZT Systems' U.S.-headquartered data center infrastructure manufacturing business, and said it would keep ZT Systems' design and customer enablement teams. It reported the agreement in an 8-K filed May 19, 2025, the current report a listed company files with the SEC to disclose an event; item 1.01 of an 8-K reports entry into a material definitive agreement.1^,2^,3^,4^,5^,6

Sanmina was to pay AMD Design $3.0 billion in total for the sale of ZT's equity, contingent payment included, the 8-K said. At closing Sanmina was to pay $2.4 billion in cash, with adjustments for working capital and other items, and to issue shares set by dividing $150 million by its volume-weighted average share price over five trading days ending on the second trading day before closing. The seller was eligible to receive up to $450 million more in cash if conditions were met after closing. AMD Design agreed not to sell the Sanmina shares for three years after closing, except that it could sell one third after the first anniversary of closing and another one third after the second.7^,8^,9^,10^,11

AMD described itself as having driven innovation in high-performance computing, graphics and visualization technologies for more than 55 years. AMD said that, as part of the sale, Sanmina would become a preferred new product introduction manufacturing partner for AMD's cloud rack and cluster-scale AI solutions.12^,13

Closing was subject to regulatory approvals among other conditions, and AMD said at the time that it expected it near the end of 2025. The agreement gave ZT and Sanmina termination rights, including if the sale was not completed by May 18, 2026, a date with two automatic extensions until Nov 18, 2026 while specified regulatory approvals remained outstanding. Sanmina would owe ZT a termination fee of up to $153 million if the agreement ended in certain circumstances tied to the failure to obtain regulatory approvals.14^,15^,16^,17

AMD had said in August 2024, when it announced the original acquisition of ZT Systems, that it intended to seek a strategic partner to buy the manufacturing business.18

The documents we hold state no equity value or enterprise value for the deal. We hold the text of the 8-K and its press release but not the agreement itself, and neither text we hold mentions games.19^,20