Nvidia acquires chip developer ARM at record price
The graphics card manufacturer Nvidia has secured the British chip developer ARM for a record sum of 40 billion US dollars and will retain their business model.
Details ARM takeover
As Nvidia itself reports, the graphics card and processor manufacturer ARM has been bought by the Japanese investment company Softbank for 40 billion US dollars, confirming speculations of the weekend. After the purchase, Softbank will hold less than ten percent of ARM. Four years ago, the group acquired the chip developer for 32 billion US dollars.
The takeover still has to be approved by the authorities in the USA, China, Great Britain and the EU. Nvidia expects approval within the next 1.5 years. Softbank will receive 21.5 billion US dollars in ordinary shares and 12 billion US dollars in cash. Upon signing the purchase agreement, US$2 billion will be due and in addition Softbank will receive up to US$5 billion depending on ARM’s performance targets.
The chip manufacturer’s employees will also receive $1.5 billion in equity from Nvidia.
Business model remains unchanged
ARM’s successful business model of open licensing will be maintained and continued. Nvidia will not change its name and well-known brand. Numerous manufacturers use ARM technologies in their products such as smartphones, tablets, notebooks, Bluetooth speakers or computers.
The chip designer is responsible for the entire process from design to production of the processors, which can then be licensed. Apple, Nvidia and other companies have an ARM architecture license. Apple uses processors based on ARM technology in its iPhones, iPads and the new Mac models.
Both companies plan to fulfill any obligations associated with the acquisition. The headquarters will remain in the UK and will be expanded. In addition, an AI excellence research center will be established.