No more reports and rumors. NVIDIA has made official the purchase of the ARM company from Japan’s SoftBank for the sum of 40 billion dollars, one of the highest public transactions in technology in recent years.
Through a blog post, NVIDIA CEO Jensen Huang made this acquisition of the world’s largest mobile chip designer official.
“ARM’s business model is brilliant. We will maintain its open licensing model and client neutrality, serving clients in any industry, around the world, and will further expand Arm’s IP licensing portfolio with NVIDIA’s world-leading AI and GPU technology.” refers executive.
“Simon Segars and his team at ARM have created an extraordinary company that is contributing to almost every technology market in the world. By uniting NVIDIA’s AI computing capabilities with Arm’s vast CPU ecosystem, we can advance computing from the cloud, smartphones, PCs, autonomous cars, and robotics, to the edge of the internet of things and expand computing. of AI to all corners of the world “, concludes in the statement.
Under the terms of the transaction, which has been approved by the boards of NVIDIA, Softbank and ARM, NVIDIA will pay SoftBank a total of 21.5 billion in NVIDIA common stock and 12 billion in cash, including 2 billion payable when signing. The number of NVIDIA shares to be issued at closing is 44.3 million, determined using the average closing price of NVIDIA common shares over the last 30 trading days. Additionally, SoftBank may receive up to $ 5 billion in cash or common stock under a profit structure, subject to ARM meeting specific financial performance targets.
SoftBank Group will still keep less than 10% of the shares.
ARM is a company specialized in microprocessors, with a large part of the world market in the smartphone sector. However, it has also started to make the leap to laptops after Apple announced that it will stop working with Intel and will do so with the ARM architecture for its MacBooks.