THL Partners to Acquire Majority Stake in Semiconductor Software Firm AMI
2 Sources
2 Sources
[1]
THL Partners to buy majority stake in semiconductor software firm AMI
THL's bet on AMI comes as investors have doubled down on the generative artificial-intelligence boom that has powered chipmakers such as Nvidia and other big tech firms, and turbocharged global demand for AI infrastructure such as data centers and high-powered servers. "When you think about big macro trends - the explosion of investment in data centers, semiconductors on a global scale, and artificial intelligence - AMI really sits at the root level of that investment," said Jim Carlisle, a managing director at THL who heads the firm's investments in the technology and business solutions sectors. Atlanta, Georgia-based AMI provides software used in embedded devices, servers and data centers. Its customers include Intel, Nvidia, Microsoft and Qualcomm. Its software helps companies manage and secure advanced computing systems, and is used in more than 60% of servers that power data centers and cloud computing, according to AMI. Launched in 1974 and formerly known as Thomas H. Lee Partners, THL is a buyout firm that primarily focuses on acquiring midsized companies in the healthcare, financial technology and services, and technology sectors. Since its founding, Boston-based THL has raised more than $35 billion across its funds, and invested in over 170 companies. Its recent acquisitions include the $2.5 billion take-private deal for healthcare technology firm Agiliti, and a majority-stake deal in forensic consulting firm YA Group. Through its automation fund, THL has backed companies like Brooks Automation, which supplies robotics and automation tools to semiconductor manufacturers. Bank of America and law firm Kirkland & Ellis advised AMI on the deal. Evercore, Ropes & Gray, and Paul, Weiss advised THL. (Reporting by Milana Vinn in New York; Editing by Matthew Lewis)
[2]
THL Partners to Buy Majority Stake in Semiconductor Software Firm AMI
NEW YORK (Reuters) - Private equity firm THL Partners on Monday agreed to acquire a majority stake in AMI, in a deal that people familiar with the matter said valued the provider of semiconductor software at roughly $600 million. The deal is expected to close in autumn this year, according to a statement seen by Reuters. THL invested in AMI through its flagship Fund IX and its Automation Fund, which invests in technology firms that build automation software and tools. THL's bet on AMI comes as investors have doubled down on the generative artificial-intelligence boom that has powered chipmakers such as Nvidia and other big tech firms, and turbocharged global demand for AI infrastructure such as data centers and high-powered servers. "When you think about big macro trends - the explosion of investment in data centers, semiconductors on a global scale, and artificial intelligence - AMI really sits at the root level of that investment," said Jim Carlisle, a managing director at THL who heads the firm's investments in the technology and business solutions sectors. Atlanta, Georgia-based AMI provides software used in embedded devices, servers and data centers. Its customers include Intel, Nvidia, Microsoft and Qualcomm. Its software helps companies manage and secure advanced computing systems, and is used in more than 60% of servers that power data centers and cloud computing, according to AMI. Launched in 1974 and formerly known as Thomas H. Lee Partners, THL is a buyout firm that primarily focuses on acquiring midsized companies in the healthcare, financial technology and services, and technology sectors. Since its founding, Boston-based THL has raised more than $35 billion across its funds, and invested in over 170 companies. Its recent acquisitions include the $2.5 billion take-private deal for healthcare technology firm Agiliti, and a majority-stake deal in forensic consulting firm YA Group. Through its automation fund, THL has backed companies like Brooks Automation, which supplies robotics and automation tools to semiconductor manufacturers. Bank of America and law firm Kirkland & Ellis advised AMI on the deal. Evercore, Ropes & Gray, and Paul, Weiss advised THL. (Reporting by Milana Vinn in New York; Editing by Matthew Lewis)
Share
Copy Link
Private equity firm THL Partners is set to acquire a majority stake in American Megatrends International LLC (AMI), a leading provider of BIOS and BMC firmware. The deal, expected to close in Q4 2023, aims to accelerate AMI's growth in the evolving semiconductor industry.
THL Partners' Strategic Acquisition
Private equity firm THL Partners has announced its intention to acquire a majority stake in American Megatrends International LLC (AMI), a prominent player in the semiconductor software industry. The deal, which is expected to close in the fourth quarter of 2023, marks a significant move in the rapidly evolving semiconductor landscape 1.
AMI's Crucial Role in Tech Infrastructure
AMI, founded in 1985, has established itself as a key provider of BIOS (Basic Input/Output System) and BMC (Baseboard Management Controller) firmware. These critical components are essential for the functioning of servers, data centers, and embedded systems across various industries. The company's software solutions play a vital role in managing and controlling hardware components, ensuring the smooth operation of complex technological infrastructures 2.
Financial Details and Market Position
While the exact financial terms of the deal have not been disclosed, the acquisition underscores the growing importance of specialized software in the semiconductor industry. AMI's strong market position, with its solutions used by many of the world's leading server, storage, and network infrastructure providers, has likely made it an attractive target for THL Partners 1.
Strategic Growth and Innovation
The partnership between THL and AMI is expected to drive accelerated growth and innovation in the semiconductor software sector. THL Partners, known for its investments in technology and software companies, brings substantial resources and expertise to the table. This collaboration aims to enhance AMI's capabilities in developing cutting-edge firmware solutions for an increasingly complex and demanding technological landscape 2.
Industry Implications and Future Outlook
The acquisition reflects the growing importance of specialized software in the semiconductor industry, particularly as technologies like artificial intelligence, cloud computing, and the Internet of Things continue to advance. AMI's role in providing crucial firmware for these technologies positions it at the forefront of this evolving market. The investment from THL Partners is expected to bolster AMI's ability to meet the increasing demands of its clients and adapt to rapid technological changes in the sector 1 2.
Summarized by
Navi
[2]
Apple's Siri Overhaul with App Intents: A Leap Forward in AI Assistant Capabilities
Apple plans to launch a major upgrade to Siri with App Intents in spring 2026, promising enhanced voice control across apps. The update faces challenges but could revolutionize iPhone interactions.
5 Sources
Technology
12 hrs ago
5 Sources
Technology
12 hrs ago
Chinese State Media Raises Security Concerns Over Nvidia's H20 AI Chips
Chinese state-affiliated media criticizes Nvidia's H20 AI chips, claiming they pose security risks and are technologically inferior. Nvidia denies these allegations, defending the integrity of their products amidst escalating US-China tech tensions.
10 Sources
Technology
12 hrs ago
10 Sources
Technology
12 hrs ago
China Seeks US Relaxation on AI Chip Export Controls in Trade Deal Negotiations
China is pushing for the US to ease restrictions on AI chip exports, particularly high-bandwidth memory chips, as part of trade negotiations ahead of a potential summit between Presidents Xi and Trump.
2 Sources
Business and Economy
12 hrs ago
2 Sources
Business and Economy
12 hrs ago
Amazon's Alexa+ Upgrade: A Promising Yet Buggy AI Overhaul
Amazon introduces Alexa+, a major AI upgrade to its voice assistant, aiming to compete with ChatGPT's conversational abilities. While offering improved features, early testing reveals significant bugs and reliability issues.
2 Sources
Technology
20 hrs ago
2 Sources
Technology
20 hrs ago
AI's Impact on Computer Science Graduates: The Coding Dream Turns Sour
Recent computer science graduates face unprecedented unemployment rates as AI tools and industry layoffs reshape the tech job market, challenging long-held promises of prosperity in the field.
2 Sources
Technology
4 hrs ago
2 Sources
Technology
4 hrs ago
Your Daily Dose of Curated AI News
Don’t drown in AI news. We cut through the noise - filtering, ranking and summarizing the most important AI news, breakthroughs and research daily. Spend less time searching for the latest in AI and get straight to action.
