AMD to Pay $334 Million for Startup SeaMicro in Data Center Push

Advanced Micro Devices Inc. (AMD) said it will pay $334 million to buy SeaMicro Inc., a chip designer with expertise in servers, adding technology that can help it compete with Intel Corp. (INTC) in the market for data centers.

AMD will pay $281 million in cash and the remainder in stock for Sunnyvale, California-based SeaMicro, AMD said in a statement. SeaMicro Chief Executive Officer Andrew Feldman will head a new AMD division that will target the market for computers that run data centers, which help companies deliver software and computing tasks over the Internet.

Through the acquisition, AMD gains SeaMicro’s designs for chips that link processors together in server computers, making them simpler and more power efficient than standard models.

AMD fell 2.3 percent to $7.35 at the close in New York. That trimmed its year-to-date gains to 36 percent.

To contact the reporter on this story: Ian King in San Francisco at ianking@bloomberg.net

To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net

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