On Monday, chip designer Advanced Micro Devices has announced its plans to acquire cloud startup Pensando for $1.9 billion to strengthen its data center products and capitalize on soaring demand from cloud and enterprise sectors. AMD’s Pensando acquisition deal value does not comprise working capital and other adjustments. Furthermore, the firm’s products comprise a programmable packet processor that controls how workloads move via the hardware infrastructure, moving work off of the CPU whenever possible to improve performance.
AMD’s Pensando Acquisition Deal Will Lower the Cost of Ownership
Furthermore, AMD claims between 8x and 13x better performance than competitive products from corporations like Nutanix, VMware, Cisco, and others. AMD chair and CEO Lisa Su stated that AMD’s Pensando acquisition is about enabling data center operators to lower the cost of ownership by utilizing software to squeeze out every last bit of efficiency.
“Today, with our acquisition of cloud startup Pensando, we add a leading distributed services platform to our high-performance CPU, GPU, FPGA, and adaptive SoC portfolio. The Pensando team brings world-class expertise and a proven track record of innovation at the chip, software, and platform level,” she said in a statement.
Cloud Startup Pensando Will Grow Faster Inside a Larger Organization
Moreover, cloud startup Pensando CEO and co-founder Prem Jain framed AMD’s Pensando acquisition in terms of being able to grow faster inside the larger organization than it could on its own. “Joining together with AMD will help accelerate growth in our core business and enable us to pursue a much larger customer base across more markets,” he said. Jain will join the data center solutions group at AMD when the deal closes.
In addition to this, the exact price of AMD’s Pensando acquisition deal will be worked out when they decide on working capital and other adjustments from Pensando, according to AMD. Nonetheless, AMD’s Pensando acquisition deal is expected to close in the second quarter, subject to customary regulatory review.
Read more: AMD to Proceed with the Acquisition of Xilinx for $53 Billion
Source: TechCrunch
