AMD Expands Its Data Center Solutions by Acquiring Pensando for $1.9 Billion






AMD Expands Data Center Solutions Capabilities with Pensando Acquisition

— Pensando’s distributed services platform expands AMD’s product portfolio with a high-performance package processor and software stack already widely deployed at cloud and enterprise customers, including Goldman Sachs, IBM Cloud, Microsoft Azure and Oracle Cloud —

AMD (NASDAQ: AMD) today announced a definitive agreement to acquire Pensando for approximately $1.9 billion, excluding working capital and other adjustments. Pensando’s distributed services platform includes a powerful, fully programmable package processor and a comprehensive software stack that accelerate networking, security, storage and other services for cloud, enterprise and edge applications.

“Building a leading data center with the best performance, security, flexibility and the lowest total cost of ownership requires a wide variety of computer engines,” said Dr. Lisa Su, AMD Chairman and CEO. “All major cloud and OEM customers have used EPYC processors to power their data center offerings. Today, with our acquisition of Pensando, we are adding 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, expanding our ability to provide leadership solutions for our cloud, enterprise and edge customers.”

Pensando’s products are already widely deployed with cloud and enterprise customers, including Goldman Sachs, IBM Cloud, Microsoft Azure and Oracle Cloud. Pensando’s powerful, highly scalable distributed services platform includes a network-deployable programmable packet processor to efficiently accelerate multiple infrastructure services simultaneously, relieve CPU workloads, and improve overall system performance. Combined with Pensando’s system software stack, the platform provides unprecedented performance, scale, flexibility and security. In real-world cloud deployments, Pensando’s solution shows 8x to 13x better performance compared to competing solutions.

“We are excited to join the AMD family. 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 realize our customers’ vision for the future of computing,” said Pensando CEO Prem Jain. “In less than five years, Pensando has assembled a world-class engineering team that is experts at building systems, along with a rich, deep ecosystem of partners and customers that currently have more than 100,000 Pensando platforms in production. Partnering with AMD will help accelerate growth in our core businesses and enable us to pursue a much larger customer base in more markets.”

“Industry leadership is based on absorbing disruptions in the business model enabled by new technologies,” said John Chambers, chairman of the board of directors, Pensando. “Pensando is built on strong customer relationships and a solution that is at least two years ahead of the curve across 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 consumes less power. Pensando’s smart switching architecture has 100x the scale, 10x the performance at a third the cost of ownership of comparable products in the enterprise market. Pensando’s leadership in software-defined cloud, compute, networking, security and storage services as part of the much larger AMD portfolio is, I believe, perfectly suited to shaping the data center computing landscape for the next decade.”

CEO Prem Jain and the Pensando team will join AMD as part of the Data Center Solutions Group, led by AMD Senior Vice President and General Manager Forrest Norrod. Pensando remains focused on executing their product and technology roadmaps, now with added scale to accelerate their business and address growing market opportunities across a wider range of customers.

The acquisition is expected to close in the second quarter of 2022, subject to customary closing conditions, including approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Consultants

DBO Partners is acting as financial advisor to AMD and Latham & Watkins LLP is acting as legal advisor. Centerview Partners is serving as financial advisor to Pensando and Wilson Sonsini Goodrich & Rosati is serving as legal counsel to Pensando.

Supporting Customer Quotes

Goldman Sachs

“Application security is an important issue for the financial services industry and our customers,” said Josh Matheus, chief executive of technology, Goldman Sachs. “Pensando’s east-west security innovation has enabled us to segment our data center network architecture to provide hyperscale-class technology and performance unmatched across the industry.”

Hewlett Packard Enterprise

“Hewlett Packard Enterprise was an early partner with Pensando because we shared a vision that the world would become much more distributed and that enterprises would need edge-to-cloud architectures to accelerate their insights and results,” said Antonio Neri, president and CEO, HPE. “Together, we took the cloud experience to the edge with the industry’s first distributed services switch, and fueled innovation in the data center by integrating future-proof Pensando distributed networking and security services into our server portfolio and HPE GreenLake cloud services offerings. We look forward to accelerating the development of these technologies with our long-standing partner AMD, whom we congratulate on this strategic acquisition.”

Microsoft Azure

“Pensando System’s full-stack solution, complete with a P4 programmable processor and hyperscale software, has enabled Microsoft Azure to rapidly extend its network and security services, improving performance, latency and scale,” said Girish Bablani, corporate vice president of Microsoft Azure. “We’ve seen a 40x improvement in overall cloud-based connection-related performance. Pensando delivered this in less than 12 months. This partnership has enabled a transformational “boundless network shift” that will ensure our customers have access to the best-performing products and services they expect from Microsoft Azure.”

Oracle Cloud

“By partnering with Pensando, Oracle Cloud Infrastructure (OCI) has developed an industry-leading Software Defined Networking stack, delivering infrastructure features to Oracle Cloud customers who have the best value for money in the cloud industry,” said Clay Magouyrk, executive vice president , Oracle Cloud Infrastructure. “Pensando’s P4 programmable platform enables OCI to continuously innovate and deliver secure, low-cost, high-speed network services. The ability to quickly add new features using a programmable hardware platform will help OCI stay ahead of its cloud competitors. Pensando’s engineering team, made up of many industry experts, has worked very successfully with OCI engineering and has sometimes acted as OCI’s expansion team. OCI considers Pensando an important strategic partner in achieving our goal of being the best infrastructure platform in the cloud industry.”


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