Lattice to acquire AMI for $1.65bn

•Lattice closes $1.65bn AMI deal in Q3 2026 with $1bn cash and $650m in stock

•AMI deal bolsters firmware control across cloud and AI infrastructure

The fact

Lattice Semiconductor said on 4 May it will acquire American Megatrends Inc for $1.65bn, including $1bn in cash and about $650m in shares. The deal is expected to close in Q3 2026. AMI, majority owned by THL Partners, is forecast to generate over $200m in revenue this year. The acquisition would lift Lattice's run rate above $1bn annually by Q4.

The Assessment

The deal gives Lattice control of AMI's BIOS and firmware stack — software that boots and manages servers before the OS loads. At roughly 8x revenue, the price reflects Lattice's bet that system-level control will become a differentiator in AI infrastructure. The integration risk is non-trivial: combining FPGA hardware with firmware software is a new playbook for the company.

What to Watch

First joint product announcements combining Lattice FPGAs with AMI firmware; design-win traction with major cloud providers within 12 months of close.

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