Lattice Semiconductor to Acquire AMI for $1.65B; Logs Higher 1Q Profit, Revenue

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By Kelly CloonanLattice Semiconductor plans to acquire AMI for $1.65 billion in cash and stock, a move aimed at expanding its position in server, artificial intelligence and cloud applications.The chipmaker separately said it had higher profit as revenue climbed in its latest quarter due to increased demand across all of its end markets.Lattice said the deal aims to bring together its low power chips with AMI's platform firmware and infrastructure manageability solutions, creating a portfolio of secure management and control solutions to address datacenter modularity, complexity and deployment challenges.The deal for AMI, which is majority owned by private equity firm THL Partners, consists of $1 billion in cash and about $650 million in shares of Lattice's common stock. Lattice expects the transaction to close in the third quarter, subject to closing conditions including regulatory approvals.For the first quarter, Lattice posted a profit of $21.8 million, or 16 cents a share, compared with $5 million, or 4 cents a share, a year earlier.Adjusted earnings per share were 41 cents, compared with estimates of 37 cents a share according to analysts polled by FactSet.Revenue jumped 42% to $170.9 million, compared with analyst estimates of $164.9 million.Chief Executive Ford Tamer said the growth was driven by increased demand across all of Lattice's end markets."We believe we are in the early stages of a multi-year growth cycle and are well positioned to deliver sustained, above-market growth in 2026 and beyond," Tamer said.For the second quarter, the company expects revenue of $175 million to $195 million on adjusted earnings per share of 42 cents to 46 cents. Analysts forecast $171 million in sales and 38 cents in adjusted per-share earnings.Write to Kelly Cloonan at [email protected]

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