Sanmina acquires ZT Systems to strengthen its AI infrastructure capabilities

On May 19, 2025, in San Jose, California, Sanmina Corporation confirmed through a press release that it has entered into a definitive agreement to acquire the data center infrastructure manufacturing business of ZT Systems from AMD. This acquisition is part of a broader strategy to enhance Sanmina's position within the cloud and AI infrastructure market. The purchase, valued at approximately $2.55 billion in cash and equity, will enable Sanmina to expand its manufacturing capabilities and customer relationships within this rapidly growing sector. Additionally, AMD will retain ownership of ZT Systems' AI systems design business and establish a partnership with Sanmina as its preferred new product introduction manufacturing partner. The acquisition is expected to double Sanmina's revenue over the next three years by enhancing its production capacities and integrating ZT Systems' advanced liquid cooling technology and manufacturing facilities located in New Jersey and Texas. This move aims to reinforce Sanmina's standing as a leading end-to-end manufacturing partner for critical technologies in the data center domain. Furthermore, the combination of both companies' expertise is expected to create a more comprehensive solution for cloud and AI-centric hyperscalers, thereby attracting new clients and solidifying existing relationships. In connection with the transaction, Sanmina has secured committed financing from Bank of America amounting to $2.5 billion, thereby facilitating the process as they navigate the complexities of merging operations. The company anticipates the acquisition will be accretive to its non-GAAP earnings per share in the first year following the transaction's closure, with additional earnings expected as synergies materialize. Major industry shifts toward increased demand for digital infrastructure underscore the urgency and strategic necessity of this acquisition at this moment in time. The deal is subject to the usual regulatory approvals and timelines, which may influence the actual date of completion. Hence, while Sanmina looks forward to welcoming the ZT Systems team, they are also mindful of the potential challenges that regulatory reviews may introduce. Overall, this strategic acquisition is poised to position Sanmina at the forefront of the rapidly advancing landscape of AI and cloud technologies, offering enhanced capabilities for addressing the needs of data centers globally.