The largest semiconductor deal in history is born! $40 billion acquisition of ARM

eric_wang

The largest semiconductor deal in history is born! $40 billion acquisition of ARM [Copy link]

On September 14, NVIDIA officially announced that it would spend $40 billion (stock and cash) to acquire ARM to build the world's top computing company in the AI era. The core information is as follows:

Combining NVIDIA’s leadership in AI with ARM’s vast computing ecosystem will drive innovation for all customers.

NVIDIA will expand ARM’s R&D presence in Cambridge, U.K., by establishing a world-class center for AI research and education and building an ARM/NVIDIA-powered AI supercomputer to conduct groundbreaking research;

NVIDIA will continue to maintain ARM's open licensing model and customer neutrality and expand ARM's IP licensing portfolio with NVIDIA technology.

“Artificial intelligence is the most powerful technological force of our time and is ushering in a new wave of computing,” said Jen-Hsun Huang, founder and CEO of NVIDIA. “In the coming years, 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 that is well-positioned for the AI era.

“Simon Segars and his team at ARM have built an extraordinary company that contributes to nearly every technology market around the world. By combining NVIDIA’s AI computing capabilities with ARM’s vast ecosystem, we can advance computing from the cloud, smartphones, PCs, autonomous vehicles and robotics to edge IoT and extend AI computing to every corner of the globe.”

“This combination has tremendous benefits for the company, our customers and the industry as a whole. For ARM’s ecosystem, the combination will enhance NVIDIA’s R&D capabilities and expand its IP portfolio with NVIDIA’s world-leading GPU and AI technologies.

“ARM will continue to be headquartered in Cambridge. This is a fantastic location where we will expand and build world-class AI research facilities to support developments in healthcare, life sciences, robotics, autonomous vehicles and other areas.

And, to attract groundbreaking work by researchers and scientists in the UK and around the world, NVIDIA will build a state-of-the-art AI supercomputer powered by ARM CPUs. ARM’s Cambridge headquarters will become a world-class technology center.”

As part of NVIDIA, ARM will continue to operate its open licensing model while maintaining the global customer neutrality that has been fundamental to its success, with 180 billion chips shipped to date.

After the transaction is completed, NVIDIA intends to retain the ARM name and strong brand image and expand the size of the Cambridge headquarters. ARM's intellectual property will continue to be registered in the UK.

NVIDIA will establish a new global AI research center on ARM's Cambridge campus, building on ARM's R&D base. NVIDIA will invest in a state-of-the-art ARM-powered AI supercomputer, training facilities for developers and a startup incubator that will attract world-class research talent and build platforms for innovation and industry collaboration in areas such as healthcare, robotics and autonomous vehicles.

Under the terms of the transaction, which has been approved by the boards of directors 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 at signing.

In addition, SoftBank may receive up to $5 billion in cash or common stock depending on the earnings structure, subject to ARM meeting certain financial performance targets.

NVIDIA will also issue $1.5 billion in equity to Arm employees. The transaction does not include ARM's IoT business.

The proposed transaction is subject to customary closing conditions, including receipt of regulatory approvals in the United Kingdom, China, the European Union and the United States. The transaction is expected to close in approximately 18 months.

dcexpert

SoftBank is having a hard time, ARM is acquired again

maoshen

dcexpert posted on 2020-9-14 11:09 Softbank is having a hard time, ARM is acquired again

ARM can acquire as long as there is sufficient US dollars

strong161

maoshen posted on 2020-9-14 13:13 ARM can acquire as long as there is sufficient US dollars

What nonsense! If it is Chinese capital, they will definitely not buy it. PerkinElmer acquired the German company Euromon Medical Laboratory Diagnostics AG for $1.3 billion in cash. Did you know that a bunch of Chinese diagnostic companies rushed to buy it at that time, and the bid was more than double the PE, but they refused to sell it. In 2016, Euromon's annual global sales reached 290 million euros. In the autoimmune market segment, Euromon is an absolute benchmark. The normal gross profit of this industry will not be less than 50%, and the net profit will not be less than 30%. The profit of imports is even higher. But they won't sell it to you, okay? Their boss is an old man who is afraid that the Chinese will damage his brand, so he sold it cheaply to the big PE.

damiaa

It's not a good thing.

dcexpert

The acquisition process is written as 18 months, but the real impact will come after 2 years

qwqwqw2088

Can't ARM do it on its own? It was sold twice in three years.