06:23 AM EDT, 08/19/2024 (MT Newswires) -- Advanced Micro Devices ( AMD ) said Monday it has agreed to acquire artificial intelligence infrastructure provider ZT Systems in a cash-and-stock deal valued at $4.9 billion.

The deal consideration includes a contingent payment of up to $400 million based on certain post-closing milestones.

The acquisition, which is slated to close H1 2025, is expected to be accretive on a non-GAAP basis by the end of next year. It is also expected to "significantly" strengthen Advanced Micro Devices' ( AMD ) AI capabilities.

Shares of Advanced Micro Devices ( AMD ) added over 2% in recent premarket activity Monday.

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