Hillsboro-based Lattice Semiconductor is going on a shopping spree, announcing Monday that it plans to buy AMI, a Georgia platform firmware and datacenter-manageability company, in a cash-and-stock deal valued at roughly $1.65 billion. The low-power FPGA specialist says the move pulls it deeper into software and infrastructure for cloud and AI and should speed its march toward a $1 billion annual revenue run rate. The companies expect the deal to close in the third quarter of 2026, pending the usual regulatory and closing approvals.
Deal Terms And The Sales Pitch
Under the merger agreement, Lattice will acquire AMI on a cash-free, debt-free basis for total consideration of about $1.65 billion. That breaks down to approximately $1.0 billion in cash plus around $650 million in Lattice common stock, with an estimated 5.2 million to 6.1 million shares to be issued, according to the company’s SEC filing. The filing states that AMI is expected to generate more than $200 million in revenue in 2026 and that Lattice anticipates the transaction will be accretive to non‑GAAP gross margin, free cash flow, and EPS. “AMI’s expertise in firmware and infrastructure for cloud and AI is a natural extension of our portfolio,” Lattice CEO Ford Tamer said in the release.
Who AMI Is And Who Is Selling
Lattice describes AMI as a leader in platform firmware and infrastructure manageability, a behind-the-scenes role that becomes critical as servers and AI hardware get more complex. AMI is majority-owned by private-equity firm THL Partners, as reported by the Portland Business Journal. In spelling out its rationale, Lattice said the acquisition strengthens its position in manageability, server, AI, and cloud markets and effectively doubles its serviceable addressable market, or SAM.
Financing And The Paperwork
To cover the cash portion of the price tag, Lattice told investors it plans to combine existing cash with new debt financing. A commitment letter contemplates a senior‑secured 364‑day term loan of up to $950 million and a revolving credit facility of up to $200 million, according to coverage of the filing. Deal advisors include Morgan Stanley as financial adviser to Lattice and J.P. Morgan for AMI, with Wilson Sonsini and Ropes & Gray providing legal counsel, based on the company’s disclosures.
What It Means For Hillsboro And The Industry
For Hillsboro and the broader Silicon Forest, the AMI purchase highlights how chipmakers are steadily moving up the technology stack into software, firmware, and manageability tools for cloud and AI systems. Lattice says that combining its low-power FPGA portfolio with AMI’s firmware and infrastructure capabilities will help customers get products to market faster and support its target of reaching a $1 billion annual revenue run rate by the fourth quarter of 2026, according to the company’s filing.
What Comes Next
The transaction still has to clear customary closing conditions and regulatory review, and both companies expect the deal to close in the third quarter of 2026, Reuters reports. Lattice is walking investors through the acquisition on an earnings call tied to its first-quarter results and says it will continue to update shareholders and customers as the process moves forward.
