AMD acquires Pensando for $1.9 billion
AMD has entered into a definitive agreement to acquire Pensando for approximately $1.9 billion.
Pensando’s distributed services platform includes a high-performance, fully programmable packet processor and comprehensive software stack that accelerate networking, security, storage and other services for cloud, enterprise and edge applications.
The value was calculated before working capital and other adjustments and the deal is expected to close in Q2.
Pensando CEO Prem Jain said: “Our shared cultures of innovation, excellence and relentless focus on partners and customers make this an ideal combination. Together, we have the talent and tools to deliver on our customers’ vision for the future of computing.
“In less than five years Pensando has assembled a best-in-class engineering team that are experts in building systems together with a rich, deep ecosystem of partners and customers who have currently deployed over 100,000 Pensando platforms into production. 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.”
Jain and the Pensando team will join AMD as part of its data centre solutions group, led by AMD SVP and GM Forrest Norrod. Pensando said it will remain focused on executing its product and technology roadmaps.
“Industry leadership is based on catching business model disruptions enabled by new technologies,” said John Chambers, chair of the Pensando board.
"Pensando is built upon strong customer relationships and a solution that is at least two years ahead in cloud, edge and enterprise. For example, the performance and scale of Pensando’s distributed services platform is 8x-13x of the largest cloud provider and uses less power. Pensando’s smart switching architecture has 100x the scale, 10x the performance at one-third the cost of ownership of any comparable products in the enterprise market. Pensando’s leadership position in software-defined cloud, compute, networking, security and storage services as part of the much larger AMD portfolio is in my opinion a perfect fit to shape the data centre computing landscape for the next decade.”