M&A - SANMINA CORP

Form Type: 8-K

Filing Date: 2025-05-19

Corporate Action: Acquisition

Type: New

Accession Number: 000110465925050437

Filing Summary: On May 18, 2025, Sanmina Corporation entered into an Equity Purchase Agreement with Advanced Micro Devices, Inc., AMD Design, LLC, and ZT Group International, Inc. Under this agreement, Sanmina will acquire all outstanding equity interests of ZT Systems for a total consideration of approximately $2.4 billion in cash, subject to adjustments based on various financial metrics upon closing. Sanmina will also issue shares of its common stock valued at $150 million as part of the acquisition, with additional contingent consideration of up to $450 million available based on ZT Systems' financial performance over the next three years. Completion of the acquisition is contingent upon fulfilling customary conditions, including regulatory approvals and satisfactory representations from the involved parties. Additionally, Sanmina has initiated a Bridge Commitment Letter with Bank of America for a $2.5 billion loan to finance the acquisition and related expenses. The deal is also expected to lead to a strategic partnership with AMD, enhancing their capabilities in AI technologies and related manufacturing operations. Sanmina's financing commitment includes standardized provisions regarding representations, warranties, and covenants.