Semiconductor chips are seen on a circuit board of a computer in this illustration picture taken February 25, 2022. REUTERS/Florence Lo/Illustration

Lattice Semiconductor to buy software firm AMI in $1.65 billion deal

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May 4 : Lattice Semiconductor will acquire AMI in a $1.65 billion deal, it said on Monday, as the chipmaker looks to expand into the software and artificial intelligence management space.

"AMI's expertise in firmware and infrastructure for cloud and AI is a natural extension of our portfolio, deepening our role in system-level security, manageability, and control," said Lattice CEO Ford Tamer.

• Under the deal, Lattice will acquire AMI for $1 billion in cash and around $650 million in shares.

• AMI is expected to generate over $200 million in revenue in 2026.

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• The deal is expected to close in the third quarter of this year.

• The acquisition adds to Lattice's trajectory towards more than $1 billion in annual revenue run rate by the fourth quarter of this year.

• Lattice makes chips that are very small, power efficient, and can be reprogrammed after manufacturing, making them flexible and useful across various industries.

• Georgia-based AMI is currently majority owned by THL Partners, a middle-market private equity firm.

• Lattice expects the acquisition to add to gross margin, free cash flow and earnings per share, on an adjusted basis.

Source: Reuters

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