Main Highlights:
- Advanced Micro Devices announced the signing of a formal agreement to acquire Pensando for $1.9 billion. The acquisition price does not include working capital or other modifications, and the transaction is expected to close in the second quarter.
- AMD will be able to realize its vision for the next-generation data center via the addition of a high-performance packet processor and a software stack that has already been executed at scale across cloud and commercial clients using Pensando’s technology.
- AMD noted that the purchase of Pensando will position it even better to provide a wide variety of high-performance and customizable solutions to fulfill the rising need for data center computing capabilities.
Advanced Micro Devices announced the completion of a formal deal to buy Pensando, a provider of distributed services platforms, for $1.9 billion. The purchase price excludes working capital and other adjustments, and the transaction is scheduled to be finalized in the second quarter. Pensando’s technology will enable AMD to execute its vision of the next-generation data center by adding a high-performance packet processor and a software stack that has previously been implemented at scale across cloud and business clients.
AMD stated that with the acquisition of Pensando, it would be even better positioned to supply a comprehensive range of high-performance and adaptable solutions to meet the growing need for data center computing capabilities. AMD’s CPUs, GPUs, field-programmable gate arrays (FPGAs), and adaptive computing engines will be combined with Pensando’s packet processor. AMD will be able to provide a diverse variety of computing machines suited for various workloads thanks to Pensando’s software.
To create a cutting-edge data center with the most satisfactory performance, security, flexibility, and lowest total cost of ownership, a diverse set of compute engines is required, according to Lisa Su, AMD’s chair and CEO. Epyc processors power all central cloud and [original equipment manufacturer] customers’ data center services. They acquired Pensando, adding a market-leading distributed services platform to their portfolio of high-performance CPUs, GPUs, FPGAs, and adaptive system-on-chips (SoCs). Pensando’s staff provides world-class knowledge and a track record of innovation at the chip, software, and platform levels, enhancing its ability to provide market-leading solutions to the cloud, enterprise, and edge clients.
The distributed services platform from Pensando comprises a completely customizable packet processor and software stack that enables AMD to offer a diverse range of high-performance and adaptable solutions to meet the rising demand for data center computing. With the acquisition of Pensando, AMD will be able to develop at the chip, software, and platform levels, while also delivering optimized solutions with high performance and value to its cloud and business clients.
Pensando is a leader in semiconductor technology and software optimized for data-flow-oriented workloads and applies to various applications, including intelligent switches.
Pensando’s architecture includes a programmable packet processor that can be spread throughout a network to efficiently accelerate numerous infrastructure services concurrently, offloading tasks off the CPU and improving overall system performance. The platform provides performance, scalability, flexibility, and security when used in conjunction with Pensando’s comprehensive system software stack.
Part of AMD Family
Pensando is pleased to be a part of the AMD family. Its complementary cultures of innovation, quality, and unwavering commitment to partners and consumers make this an excellent match. According to Pensando CEO Prem Jain, they now have the skills and tools necessary to execute their clients’ vision for the future of computing. In less than five years, Pensando has built a world-class technical team comprised of professionals in system development and a robust, deep network of partners and customers that have put over 100,000 Pensando platforms into production. By combining with AMD, they will be able to accelerate growth in their core business and target a much wider client base across a broader range of sectors.
Jain and the Pensando team will join AMD’s Data Center Solutions Group, managed by AMD senior vice president Forrest Norrod. Pensando will continue to execute on its product and technology roadmaps, leveraging their increased size to drive growth and meet emerging market opportunities across a more extensive client base.
The solutions are entirely programmable and software-defined, benefiting clients who demand the acceleration of many concurrent infrastructure services at scale while consuming little power. Oracle Cloud, Microsoft Azure, and others have used Pensando systems that combine software-defined networking, security, encryption, and NVMe/TCP network storage on a single card.
Along with the P4 programmable processor, Pensando has an improved software stack that accelerates infrastructure services for cloud providers. AMD is advised financially by DBO Partners and legally by Latham & Watkins. Pensando’s financial adviser is Centerview Partners, and its legal counsel is Wilson Sonsini Goodrich & Rosati.
