SAN FRANCISCO (05/23/2000) - U.S. chip maker Advanced Micro Devices Inc. (AMD) today said it has reached an agreement to sell 90 percent of its communications products division for US$375 million to investment firm Francisco Partners LP.
The sale of the 160-person division is part of AMD's strategy of focusing itself on the production of personal computer microprocessors and related products, while peeling off nonessential divisions, John Greenagel, an AMD spokesman, said today in a phone interview.
"We want to keep our expertise focused on helping our PC (personal computer) processor business," he said.
In October of last year, AMD announced it planned to sell its communications group, which at that time included both its communications products division and network products division, Greenagel said.
However, AMD decided in March to retain the assets of the network products division, while ending its status as a separate division, he said. The company will not develop networking products but intends to market chips that support networking, he added.
"We decided we wanted to hold onto the people, the expertise and the intellectual property of the network products division," Greenagel said. "We want to make sure that our microprocessors and related chips will support connectivity, so our chips will include connectivity."
Robust sales of AMD microprocessors and flash memory products have led to record-breaking quarterly results for the company in the last two quarters, Greenagel said. [See "AMD Boasts a Bumper Fourth Quarter," Jan. 19.]AMD is based in Sunnyvale, California, and can be reached at +1-408-732-2400 or on the World Wide Web at http://www.amd.com/. Francisco Partners, in San Francisco, can be reached at +1-415-277-2900. The firm's Web site, which is under construction, is at http://www.franciscopartners.com/.