Key Takeaways:
Lattice Semiconductor completed its $1.65 billion acquisition of firmware provider AMI, creating a combined secure management platform that the company expects to drive annual revenue past $1 billion by year-end.
Lattice Semiconductor Corp. closed its $1.65 billion acquisition of AMI on Monday, merging low-power programmable chip technology with platform firmware to create what the company called the industry's most complete secure management and control platform for data center AI infrastructure.
"Together, we offer even more benefits to our customers with differentiated low power programmable FPGA and firmware solutions," Ford Tamer, president and chief executive officer of Lattice, said in a statement. "We remain committed to the neutrality and openness that AMI and Lattice customers and partners have long relied on."
The deal, first announced May 4, is expected to be accretive to gross margin, free cash flow and non-GAAP earnings per share, according to the company. Lattice projects a $1 billion or greater annual revenue run rate by the end of 2026, up from its second-quarter revenue guidance of $175 million to $195 million. The company will report quarterly results on Aug. 4.
The combination positions Lattice to serve the convergence of hardware and firmware required by hyperscalers, original equipment manufacturers, ODMs and neocloud providers as they address escalating security, power and performance demands from AI workloads. AMI's silicon-neutral approach — a cornerstone of its relationships with the world's leading cloud and AI infrastructure providers — will remain intact, with the AMI brand, product portfolio and leadership team continuing unchanged.
AMI will operate as a dedicated business unit within Lattice under the name AMI, a Lattice Company. Sanjoy Maity, previously AMI's chief executive officer, will continue to lead the unit as senior vice president and general manager, reporting directly to Tamer. The unit's firmware and manageability solutions will continue to be developed and delivered without preference for any silicon vendor, including Lattice.
THL Partners, the private equity firm that acquired a majority stake in AMI in 2024, completed its sale of the company as part of the transaction and will retain an equity ownership interest in Lattice. Jim Carlisle, managing director and head of technology and business solutions at THL, said the firm's investment reflected "conviction in AI infrastructure as a long-term investment theme, including the silicon, firmware and management systems supporting the next generation of artificial intelligence."
Lattice expects to provide additional information on AMI's operating results and anticipated future performance when it reports second-quarter earnings on Aug. 4. The company's shares trade on the Nasdaq under the ticker LSCC.
This article is for informational purposes only and does not constitute investment advice.
