Lattice to acquire AMI in $1.65 billion deal

Key Takeaways

• Lattice Semiconductor is acquiring AMI for $1.65 billion to expand its position in server, AI, and cloud applications
• The acquisition combines Lattice's low power FPGAs with AMI's platform firmware and infrastructure manageability solutions
• The combined company expects to generate over $200 million in revenue in 2026 and achieve a $1 billion+ annual revenue run rate by Q4 2026
• The transaction is expected to close in the third quarter of 2026, subject to regulatory approvals

Introduction to the Acquisition

Lattice Semiconductor has announced a definitive agreement to acquire AMI, a leader in platform firmware and infrastructure manageability for cloud and AI, in a deal worth $1.65 billion. This strategic acquisition aims to advance Lattice's position in server, AI, and cloud applications, spanning hardware, security, manageability, and control.

Benefits of the Acquisition

The acquisition brings together Lattice's industry-leading low power FPGAs with AMI's industry-leading platform firmware and infrastructure manageability solutions. This combination creates a complete portfolio of secure management and control solutions, addressing datacenter modularity, complexity, uptime, and deployment challenges. The combined company will maintain its commitment to delivering agnostic companion chips and solutions for the compute, communications, industrial, and embedded markets.

Transaction Details

The acquisition is valued at $1.65 billion, consisting of $1.0 billion in cash and approximately $650 million in shares of Lattice common stock. The number of shares to be issued will adjust based on the trading price of Lattice's common stock prior to the completion of the acquisition. The transaction is expected to close in the third quarter of 2026, subject to regulatory approvals.

Comparison of Lattice and AMI

Financial Projections

The acquisition is expected to be accretive to gross margin, free cash flow, and EPS on a non-GAAP basis. The combined company aims to achieve a $1 billion+ annual revenue run rate by Q4 2026.

Bottom Line

The acquisition of AMI by Lattice Semiconductor is a strategic move to expand its position in server, AI, and cloud applications. The combined company will offer a complete portfolio of secure management and control solutions, addressing the growing demands of the datacenter and cloud markets. With a projected revenue of over $200 million in 2026 and a goal to achieve a $1 billion+ annual revenue run rate by Q4 2026, this acquisition is expected to drive growth and innovation in the industry.