US private equity investor THL Partners has reached a definitive agreement with HGGC to acquire a majority stake in AMI.
Financial terms of the transaction were not disclosed, however, citing sources, Reuters reported that the deal valued AMI at approximately $600m.
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AMI offers technology companies silicon-level software (Dynamic Firmware) needed to power, boot, manage, orchestrate, and secure contemporary computing environments.
With the investment, AMI hopes to fuel its product innovation and market expansion efforts, catering to a global clientele that includes industry giants such as Microsoft, Intel, NVIDIA and ARM.
THL claims that more than 60% of servers used in data centres and cloud environments depend on AMI firmware.
Founded in 1985, AMI employs more than 1,500 engineers across seven countries.
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By GlobalDataAMI CEO Sanjoy Maity said: “As we embark on our next stage of growth and innovation, we are confident that THL is the right strategic partner for AMI. THL’s deep expertise in chips and software, and their commitment to the company’s core mission to help our customers scale, make them the right partner.”
THL managing director Zach Gut said: “Given our experience in semiconductors and software, THL has long seen AMI as a unique opportunity. As the world’s computational needs grow due to the proliferation of AI and cloud computing, demand for sophisticated firmware to manage complex hardware will grow in tandem.
“AMI is the global leader in this foundational work, and we are committed to help this talented team continue to support the world’s leading technology companies.”
The investment in AMI comes from THL’s flagship Fund IX and its Automation Fund, which is the private equity industry’s first fund dedicated solely to automation-related businesses.
THL, established in 1974 and previously known as Thomas H Lee Partners, specialises in acquiring mid-sized companies, particularly in the healthcare, fintech, and technology sectors.
The Boston-based firm has a history of investments, including the recent $2.5bn acquisition of Agiliti and a majority stake in the forensic consulting firm YA Group.
THL’s Automation Fund has previously supported companies like Brooks Automation.
