Synteq Digital acquires HMTech assets to expand GPU repair services
#Synteq Digital #HMTech #GPU repair #Data centers #Hardware maintenance #Texas #Horizon Kinetics #High-performance computing
📌 Key Takeaways
- Synteq Digital acquired HMTech's assets to launch a new GPU Repair and Refurbishment Division.
- The deal includes two Texas data centers with a power capacity of up to 30MW.
- The acquisition was primarily funded through equity, making HMTech partners into shareholders.
- HMTech's leadership and staff will integrate into Synteq, with Gerald Wilkie taking a VP role.
📖 Full Retelling
Synteq Digital, a leading technology infrastructure firm, finalized the acquisition of HMTech’s operating assets in Texas on Monday to significantly expand its specialized computer hardware repair and high-performance computing maintenance capabilities. This strategic move, primarily settled through equity, targets the growing demand for Al and high-performance computing (HPC) lifecycle management. The deal encompasses HMTech’s specialized repair facilities and two data center sites located in Texas, which currently boast an expansion capacity of up to 30MW, providing a robust physical footprint for Synteq’s operational scaling.
The acquired assets will serve as the cornerstone for Synteq’s newly established GPU Repair and Refurbishment Division. This division is specifically designed to address the maintenance needs of expensive high-value compute hardware, which has become increasingly critical due to the global surge in artificial intelligence development. As part of the integration process, the majority of HMTech’s workforce and management team will transition to Synteq. Notably, Gerald Wilkie, the former CEO of HMTech, has been appointed as Synteq’s Vice President of Mining Site Development to oversee the growth of these large-scale facilities.
This transaction follows a pattern of aggressive expansion for Synteq Digital, which recently completed a strategic real estate acquisition from Horizon Kinetics and FRMO Corp. The relationship between these entities has evolved from a functional partnership to a shareholder structure, with Horizon Kinetics CEO Murray Stahl expressing strong confidence in Synteq’s execution strategy. Despite a recent decline in its stock price, Horizon Kinetics maintains a strong financial position with 66% revenue growth over the last year and a low price-to-earnings ratio, suggesting the firm is currently undervalued by the market.
Synteq’s leadership emphasized that the move marks a transition toward comprehensive lifecycle management for high-value hardware. To ensure the legal and financial integrity of the deal, Synteq retained Keefe, Bruyette & Woods as financial advisors and Cozen O’Connor LLP for legal counsel. While the primary aspects of the deal are settled, the final completion remains subject to standard customary closing conditions typical of large-scale technology asset acquisitions.
🏷️ Themes
Mergers and Acquisitions, Technology Infrastructure, Artificial Intelligence
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📄 Original Source Content
Synteq Digital announced Monday it has completed its acquisition of HMTech’s operating assets, expanding its capabilities in computer hardware repair and maintenance services. The deal includes HMTech’s operating business, specialized computer hardware repair facilities, and two data center sites in Texas with current and expansion capacity of up to 30MW. Most of the acquisition was settled through equity. The acquired assets will form the foundation for Synteq’s new GPU Repair and Refurbishment Division, focusing on servicing high-performance computing and AI hardware maintenance. As part of the transaction, the majority of HMTech’s management and employees will join Synteq. Gerald Wilkie, CEO of HMTech, will become Synteq’s Vice President of Mining Site Development. "This acquisition is at a strategic moment for Synteq," said Taras Kulyk, CEO of Synteq Digital. "We are moving into comprehensive lifecycle management for high-value compute hardware, including GPUs." This acquisition follows Synteq’s previously announced strategic real estate acquisition from Horizon Kinetics and FRMO Corp. Horizon Kinetics currently trades at $27, with a notably low P/E ratio of 5.21 and a strong liquidity position reflected in its 4.58 current ratio. Murray Stahl, CEO of Horizon Kinetics, stated: "We have watched Synteq execute on its strategy with precision and are thrilled to, once again, convert our relationship from partner to shareholder." Financial data shows Horizon Kinetics has experienced 66% revenue growth over the last twelve months despite its stock taking a 29.6% hit over the past six months. The company maintains more cash than debt on its balance sheet and is currently undervalued according to fair value analysis. Keefe, Bruyette & Woods, A Stifel Company, served as financial advisor to Synteq Digital for the transaction, while Cozen O’Connor LLP provided legal advice. The completion of the transaction remains subject to customary closing conditions. In other r...