Nvidia is all set to buy ARM from SoftBank for $40 billion in stock and cash deal


Nvidia is now set to acquire British semiconductor giant, ARM from SoftBank in $40 billion. Nvidia will pay the SoftBank with the $21.5 billion in shares and $12 billion in cash.

ARM central processing units are inbuilt into the cloud data centers, smartphones, personal computers, and supercomputers. In the year 2019, more than 22 billion computers were built with the ARM chipsets, with the total number of computers with the ARM technology pegged to be 200 billion.

Executive Opinion

Jensen Huang, founder and CEO of NVIDIA, said, "AI is the most powerful technology force of our time and has launched a new wave of computing. In the years ahead, trillions of computers running AI will create a new internet-of-things that is thousands of times larger than today’s internet-of-people. Our combination will create a company fabulously positioned for the age of AI."

Masayoshi Son, chairman and CEO of SBG, said, "NVIDIA is the perfect partner for Arm. Since acquiring Arm, we have honored our commitments and invested heavily in people, technology and R&D, thereby expanding the business into new areas with high growth potential. Joining forces with a world leader in technology innovation creates new and exciting opportunities for Arm. This is a compelling combination that projects Arm, Cambridge and the U.K. to the forefront of some of the most exciting technological innovations of our time and is why SoftBank is excited to invest in Arm’s long-term success as a major shareholder in NVIDIA. We look forward to supporting the continued success of the combined business."

Nvidia's ARM Acquisition

SoftBank may also receive around $5 billion in cash or common stock under an earnout construct; subject to satisfaction of specific financial performance targets by the ARM. Nvidia will also issue $1.5 billion in equity to ARM employees.

The transaction which is expected to be completed in the 18 months, is subject to obtaining regulatory approvals in the EU, US, China, and the UK.

Nvidia operates in the same vertical as that of the ARM customers, such as Apple, Intel, and AMD. It also counts Samsung and Qualcomm as its prestigious customers, all of whom rely heavily on it to architect and manufacture the chipsets used in their devices.

Nvidia will also expand the ARM’s R&D centers in Cambridge, UK. It will establish a new AI research and education center and build an Arm-Nvidia supported AI supercomputer for the advanced research purposes in the city.
PC: Pablo, Pixabay

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Udit Agarwal Opinions expressed by techsutram contributors are their own. More details

Udit Agarwal is a Digital Marketer and a Content Marketing Specialist, He enjoys technical as well as non-technical writing. His passion and urge for gaining new insights on gadgets, smartphones and technology has led him to Techsutram. He quenches his thirst for technology through his action oriented writing skills and a profound ability to stay up to date with latest industry trends.

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