NVIDIA BUYS ARM

NVIDIA (NASDAQ: NVDA) has bought ARM holdings from the Japanese Softbank Group (TOKYO: 9984) for $40 billion. A few years ago Softbank buys ARM for $32 billion so the deal represents a good profit.

  • Unites NVIDIA’s leadership in artificial intelligence with Arm’s vast computing ecosystem to drive innovation for all customers
  • NVIDIA will expand Arm’s R&D presence in Cambridge, UK, by establishing a world-class AI research and education center, and building an Arm/NVIDIA-powered AI supercomputer for groundbreaking research
  • NVIDIA will continue Arm’s open-licensing model and customer neutrality and expand Arm’s IP licensing portfolio with NVIDIA technology
  • Immediately accretive to NVIDIA’s non-GAAP gross margin and EPS
  • Consideration of $40 billion to be met through a combination of NVIDIA shares and cash
  • NVIDIA will also issue $1.5 billion in equity to Arm employees.

SoftBank and Arm are fully committed to satisfying the undertakings made by SoftBank when it acquired Arm in 2016, which are scheduled to complete in September 2021. Following the closing of the transaction, NVIDIA intends to retain the name and strong brand identity of Arm and expand its base in Cambridge. Arm’s intellectual property will remain registered in the U.K. 

The proposed transaction is subject to customary closing conditions, including the receipt of regulatory approvals for the U.K., China, the European Union and the United States. Completion of the transaction is expected to take place in approximately 18 months.

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