By Milana Vinn
NEW YORK (Reuters) – Private equity firm THL Partners on Monday agreed to acquire a majority stake in AMI, in a deal that people familiar with the matter said valued the provider of semiconductor software at roughly $600 million.
The deal is expected to close in autumn this year, according to a statement seen by Reuters. THL invested in AMI through its flagship Fund IX and its Automation Fund, which invests in technology firms that build automation software and tools.
THL’s bet on AMI comes as investors have doubled down on the generative artificial-intelligence boom that has powered chipmakers such as Nvidia and other big tech firms, and turbocharged global demand for AI infrastructure such as data centers and high-powered servers.
“When you think about big macro trends – the explosion of investment in data centers, semiconductors on a global scale, and artificial intelligence – AMI really sits at the root level of that investment,” said Jim Carlisle, a managing director at THL who heads the firm’s investments in the technology and business solutions sectors.
Atlanta, Georgia-based AMI provides software used in embedded devices, servers and data centers. Its customers include Intel, Nvidia, Microsoft and Qualcomm.
Its software helps companies manage and secure advanced computing systems, and is used in more than 60% of servers that power data centers and cloud computing, according to AMI.
Launched in 1974 and formerly known as Thomas H. Lee Partners, THL is a buyout firm that primarily focuses on acquiring midsized companies in the healthcare, financial technology and services, and technology sectors. Since its founding, Boston-based THL has raised more than $35 billion across its funds, and invested in over 170 companies.
Its recent acquisitions include the $2.5 billion take-private deal for healthcare technology firm Agiliti, and a majority-stake deal in forensic consulting firm YA Group. Through its automation fund, THL has backed companies like Brooks Automation, which supplies robotics and automation tools to semiconductor manufacturers.
Bank of America and law firm Kirkland & Ellis advised AMI on the deal. Evercore, Ropes & Gray, and Paul, Weiss advised THL.
(Reporting by Milana Vinn in New York; Editing by Matthew Lewis)
