Lattice Semiconductor to Acquire AMI for $1.65bn, Targeting $1bn+ Revenue Run Rate
Lattice Semiconductor will acquire AMI from THL Partners for $1.65bn, paying $1bn cash and $650m in stock via 5.2–6.1 million shares. The deal is expected to close in Q3 2026, broadening Lattice’s FPGA portfolio with AMI’s firmware solutions and targeting a $1bn-plus revenue run rate by Q4 2026.
1. Deal Terms
Lattice Semiconductor will acquire AMI from THL Partners for $1.65bn, comprising $1bn in cash and roughly $650m in newly issued Lattice shares. The share issuance will range between 5.2 million and 6.1 million shares, including equity awards for AMI employees valued at $57.3m based on Lattice’s May 1 share price.
2. Strategic Rationale
The acquisition integrates AMI’s firmware and infrastructure manageability solutions with Lattice’s low-power FPGA portfolio to offer secure management and control systems for cloud data centers, AI platforms, and modular servers. This expands Lattice’s footprint in high-growth cloud and AI infrastructure markets.
3. Financial Impact
Lattice expects the transaction to be accretive to gross margins, free cash flow, and non-GAAP EPS, aligning with its goal of exceeding a $1bn annual revenue run rate by Q4 2026. AMI is projected to generate over $200m in revenue this year, contributing immediately to Lattice’s top line.
4. Closing Timeline
The deal is anticipated to close in the third quarter of 2026, pending regulatory approvals and customary closing conditions. Full integration is planned to streamline operations and accelerate product development cycles across combined portfolios.