Advanced Micro Devices (AMD) has agreed to buy Pensando Systems, a distributed services platform, for $1.9 billion, before working capital and other adjustments.
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Pensando’s distributed services platform expands AMD’s product portfolio with a high-performance packet processor and software stack, the California-based firm, said in a statement.
AMD said Pensando’s products are already deployed at scale across cloud and enterprise customers, including Goldman Sachs, IBM Cloud, Microsoft Azure and Oracle Cloud.
Pensando’s programmable packet processor can be distributed throughout a network to efficiently accelerate multiple infrastructure services simultaneously, offloading workloads from the CPU and increasing overall system performance, according to the statement.
The startup claims its solution demonstrates between 8x and 13x greater performance compared to competitive solutions, in real-world cloud deployments.
Pensando CEO Prem Jain and his team will join AMD as part of the Data Centre Solutions Group, led by Forrest Norrod, SVP and General Manager at AMD. The deal is expected to close in the second quarter of 2022, AMD said.
Global data centre market size was valued at $215.8 billion in 2021 and is estimated to reach $288.3 billion by 2027, growing at a CAGR of 4.95% during the forecast period, according to a report by market research provider Arizton.
