BY Richard Summerfield
UK-based computer chip designer Arm Ltd. is to be sold to American graphics chip specialist NVIDIA in a deal worth $40bn.
Arm is one of Britain’s most successful tech companies, and the decision by its Japanese owner SoftBank to sell the company could reshape the semiconductor landscape.
Under the terms of the deal, NVIDIA will pay SoftBank $21.5bn in shares and $12bn in cash for company, although the deal is still subject to regulatory approval in the UK, China, the European Union and the US. Completion of the deal is expected to take place in approximately 18 months. The deal is expected to attract opposition from its new owners’ rivals and British politicians concerned about foreign takeovers.
SoftBank acquired Arm in 2016 for $32bn and pledged to keep the company headquartered in Cambridge. NVIDIA has made a similar pledge, stating it would build additional research and support facilities at Arm’s campus in the city.
“AI is the most powerful technology force of our time and has launched a new wave of computing,” said Jensen Huang, founder and chief executive of NVIDIA. “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.”
“NVIDIA is the perfect partner for Arm,” said Masayoshi Son, chairman and chief executive of SoftBank Group. “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.”
He added: “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.”
“Arm and NVIDIA share a vision and passion that ubiquitous, energy-efficient computing will help address the world’s most pressing issues from climate change to healthcare, from agriculture to education,” said Simon Segars, chief executive of Arm. “Delivering on this vision requires new approaches to hardware and software and a long-term commitment to research and development. By bringing together the technical strengths of our two companies we can accelerate our progress and create new solutions that will enable a global ecosystem of innovators. My management team and I are excited to be joining NVIDIA so we can write this next chapter together.”
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