AMD buying SeaMicro for $334 million

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SUNNYVALE< Calif. (AP) ? Chip maker Advanced Micro Devices Inc. said Wednesday that it is buying SeaMicro for $334 million in a deal it hopes will increase its appeal with data center operators.

SeaMicro, based in Sunnyvale, Calif., makes energy-efficient servers that are used in data centers for cloud computing.

AMD said the acquisition will combine the two companies’ technology to provide customers with a range of processor choices and platforms that cut data center complexity and energy consumption.

AMD said that it remains committed to its traditional server business and will continue to invest in that area.

AMD, also based in Sunnyvale, said it will pay for most of the acquisition in cash from existing reserves.

AMD shares fell 17 cents to close at $7.35.