Lattice Semiconductor (NASDAQ: LSCC) has entered into a definitive agreement with THL Partners to acquire AMI, a leading provider of platform firmware and infrastructure manageability solutions for cloud and artificial intelligence workloads, in a $1.65 billion transaction aimed at building a comprehensive secure management and control platform for modern computing environments.
The deal is positioned as a strategic expansion of Lattice’s presence in server, AI and cloud markets, extending its capabilities beyond low-power field-programmable gate arrays into system-level security, manageability and control. By integrating AMI’s firmware and infrastructure management expertise with Lattice’s semiconductor portfolio, the combined entity aims to address growing complexity in data center architectures, including modular deployment, uptime optimization and lifecycle management. The companies also emphasized a continued commitment to silicon-agnostic solutions across compute, communications, industrial and embedded ecosystems.
Ford Tamer, President and Chief Executive Officer of Lattice Semiconductor, said the acquisition advances the company’s “everywhere companion chip” strategy and strengthens its ambition to deliver secure management and control solutions across increasingly complex systems. He noted that AMI’s expertise in firmware and cloud infrastructure represents a natural extension of Lattice’s existing portfolio, deepening its role in system-level security, manageability and control. Tamer added that the combined capabilities are expected to enhance customer outcomes by enabling faster system deployment, improved design flexibility and broader architectural choice, while also supporting long-term value creation for shareholders.
Sanjoy Maity, Chief Executive Officer of AMI, described the transaction as a natural progression of a long-standing collaboration between the two companies. He said the combination builds on a shared vision for secure system design and will expand the reach of AMI’s platform firmware and infrastructure manageability solutions. Maity emphasized that AMI will continue to support open, silicon-agnostic and multi-vendor environments, which remain central to its customer commitments. He added that the partnership enables the delivery of more integrated and complete control solutions for next-generation computing systems.
Under the terms of the agreement, Lattice will acquire AMI on a cash-free and debt-free basis for a total consideration of $1.65 billion, comprising $1.0 billion in cash and approximately $650 million in Lattice common stock. The share component will adjust based on trading price conditions prior to closing, subject to minimum and maximum issuance thresholds. AMI is expected to generate more than $200 million in revenue in 2026. The transaction is anticipated to close in the third quarter of 2026, pending regulatory approvals and customary closing conditions. AMI is currently majority owned by THL Partners, a private equity firm focused on semiconductor and infrastructure investments.
The companies expect the combination to be accretive to gross margin, free cash flow, and non-GAAP earnings per share, reinforcing Lattice’s long-term financial trajectory. Management reiterated its ambition to achieve a $1 billion-plus annual revenue run rate by the fourth quarter of 2026, supported by demand in AI, cloud, and edge computing infrastructure. Market observers view the deal as a consolidation play in secure compute management, where integration of hardware and firmware layers is increasingly critical. This positions the combined platform more directly against rising demand for integrated firmware-hardware security stacks in AI-driven data centers, where operational resilience and automated infrastructure management are becoming competitive differentiators.
