AMD and other tech firms have struck a deal with Exeter’s Finance Llcs to buy a majority stake in the company that oversees a portfolio of investment funds.
The acquisition will be made through a deal called the “RV Financing” fund, which the firms announced on Friday.
Exeter will become Exeter Ventures’ largest investor, with a $300 million stake in a fund that invests in small and mid-cap companies in the energy sector.
It’s not clear what the investment portfolio Exeter is targeting will look like.
Exasper has been trying to sell its stake in Exeter since the company’s IPO in 2015, but failed to secure a deal.
Exeter’s finance portfolio has a large amount of debt.
That debt, which is expected to grow in the future, is part of what made it so attractive to AMD.
The company already has more than $8 billion in debt on its balance sheet, according to FactSet.
The two companies had agreed on a $500 million upfront investment, but that was reduced to $250 million in September 2016.
In January, AMD announced that it would reduce its debt to $200 million in the next year, but still had about $1.5 billion in outstanding debt.
The new Exeter fund will likely be used for more long-term investments, said Mark Osterloh, the company and Exeter chief executive officer.
Exter’s portfolio is also one of the most diversified in the industry.
It includes more than 70 funds that track companies across a wide range of industries, including healthcare, manufacturing, and education.
Exercising that portfolio would make Exeter the largest investor in Exasper.
The deal also includes Exeter equity, with the two companies working to lock in the purchase price through the end of the fiscal year.
Exer is not disclosing the exact valuation of the new Exasper fund, but OsterLoh said in a statement that the fund is expected at around $200 per share.
The value of the equity is not disclosed.
Exasper’s shares have gained about 35% in 2017.