Nvidia to acquire ARM for $ 40 billion

A GPU specialist has just acquired the company that specializes in artificial intelligence and microprocessors, ARM, the formerly owned by Japanese giant SoftBank. This deal would cost a modest $ 40 billion.

ARM acquired by Nvidia

After several weeks of negotiations marred by rumors of all kinds, the deal was sealed. Japan’s SoftBank Group announced this morning that it has sold its British subsidiary ARM to US giant Nvidia. A deal worth nearly $ 40 billion (or about € 33.7 billion), which should not be completed until March 2022, according to EnGadget.

In fact, if the American company does indeed find a trade agreement with the Japanese group, it still needs to obtain authorization from the British, Chinese, American and European regulators to close negotiations permanently.

SoftBank Group acquired SoftBank in 2016 for $ 32 billion. Since its inception in 1990, ARM has established itself as one of the global leaders in the microprocessor and artificial intelligence market. With its new recruiter, the American giant Nvidia, already the champion of graphics cards, is promising to become a true juggernaut in the semiconductor industry.

For its part, SoftBank greatly congratulates the conclusion of this sale, arguing that ARM’s access to Nvidia will allow its former subsidiary to “realize its best full potential”, by making use of all the technologies developed by the American company. Note that despite the change of ownership, ARM has confirmed its desire to maintain its business model on the basis of open licenses.

40 billion … subject to conditions

While the sale price mentioned by the two market giants is among the highest since the beginning of the year, it represents the maximum amount. In fact, Nvidia is close to settling more than half of the amount ($ 21.5 billion) with its own equity, while only $ 12 billion will be paid out in cash. The remaining $ 6.5 billion will be paid out based on future ARM business performance.

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