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Nvidia picking up Arm from SoftBank
Posted on Monday, 14 September 2020 13:04
Nvidia has agreed terms for the acquisition of UK-headquartered computer chip and processor designer Arm from SoftBank.

The company will buy the business, which will continue to operate under its current name from its existing base in Cambridge, for up to USD 40.00 billion.

Of this amount, USD 21.50 billion will be in the form of shares in the acquiror, with USD 12.00 billion to be in cash.

A further USD 5.00 billion earn-out component will be due, subject to certain financial targets being achieved by Arm, while employees in the target will receive Nvidia stock worth USD 1.50 billion.

Completion of the deal remains subject to multiple regulatory approvals and is slated to follow in around 18 months’ time.

Arm’s IoT Services Group unit is not included in the purchase and the group’s intellectual property will continue to be registered in the UK.

Nvidia believes the acquisition will have a positive effect on its non-generally accepted accounting principles gross margin and earnings per share.

The buyer’s founder, Jensen Huang, said the combination will create a new business which is well positioned for the future as a result of its strengths in the artificial intelligence segment.

He stated: “Uniting NVIDIA’s AI computing capabilities with the vast ecosystem of Arm’s CPU, we can advance computing from the cloud, smartphones, PCs, self-driving cars and robotics, to edge IoT, and expand AI computing to every corner of the globe.”

According to Zephyr, the M&A database published by Bureau van Dijk, Nvidia has already announced one acquisition in 2020 to date, having signed on the dotted line to pick up San Francisco-based online cloud storage platform developer SwiftStack for an undisclosed sum in March.

Arm claims to be the world’s leading semiconductor intellectual property company.

The firm employs in excess of 6,000 people and its technology is used by 70.0 per cent of the global population, according to its website.

© Zephus Ltd