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NVIDIA To Acquire SoftBank’s Arm In A $40 Billion Deal

NVIDIA, the leading maker of GPUs, on Sunday announced its plans to acquire U.K.-based chip designer Arm Holdings from SoftBank Group Corp. for a $40 billion deal in stock and cash. 

For those unaware, Japanese conglomerate SoftBank had purchased Arm Holdings for $31.4 billion back in 2016 to expand into the internet-of-things (IoT) technology. 

Under the terms of the deal, NVIDIA will pay SoftBank $21.5 billion in stock and $12 billion in cash for Arm, which includes $2 billion payable at signing.

SoftBank may receive an additional $5 billion in cash or common stock under an earn-out agreement, subject to satisfaction of specific financial performance targets by Arm. NVIDIA will also issue $1.5 billion in compensation in equity for existing Arm employees. 

The combination brings together NVIDIA’s leading AI (artificial intelligence) computing platform with Arm’s vast ecosystem to create the premier computing company ...

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