NVIDIA does not buy ARM, the acquisition plan terminated

NVIDIA and SoftBank Group Corp. (“SBG”) had announced the 13 September 2020 that it entered into a definitive agreement under which NVIDIA would acquire Arm from SoftBank in a transaction worth $ 40 billion. The goal was to create “the leading computing company for the age of artificial intelligence, accelerating innovation as it expands into large, fast-growing markets”. The February 7, 2022NVIDIA and SBG have announced the termination of this transaction, with the parties agreeing to terminate the agreement due to “significant regulatory challenges that prevented completion of the transaction, despite the parties’ good faith efforts”as reported in the press release. Arm has now decided to start preparations for an initial public offering (IPO).

“Arm has a bright future and we will continue to support it as a proud licensee for decades to come.” said Jensen Huang, founder and CEO of NVIDIA. “Arm is at the heart of important IT dynamics. While we will not be one company, we will work closely with Arm. The significant investments made by Masa have positioned Arm to expand the reach of the Arm CPU beyond client computing to supercomputing, cloud, AI and robotics. I expect Arm to be the most important CPU architecture of the next decade. “

SBG also announced that, in coordination with Arm, it will initiate preparations for Arm’s initial public offering (IPO) by the fiscal year ending March 31, 2023. SBG believes that Arm’s technology and intellectual property will continue to be at the heart of mobile computing and the development of artificial intelligence.

“Arm is becoming a center of innovation not only in the mobile phone revolution, but also in cloud computing, automotive, Internet of Things and the metaverse, and has entered its second phase of growth,” said Masayoshi Son. , Representative Director, Corporate Officer, President and CEO of SoftBank Group Corp. “We will take this opportunity and begin preparing to release Arm and make further progress.”

Mr. Son continued: “I want to thank Jensen and his talented team at NVIDIA for trying to bring these two great companies together and wish them all success.”

In accordance with the terms of the agreement, SBG will retain the $ 1.25 billion prepaid from NVIDIA, which will be recorded as a profit in the fourth quarter and NVIDIA will retain its 20-year Arm license.

Below is the original article dated 14 September 2020, the one relating to NVIDIA’s intention to acquire Arm Limited from SBG and SoftBank Vision Fund.

NVIDIA and SoftBank Group Corp. (SBG) have announced the definitive agreement under which NVIDIA will acquire Arm Limited from SBG and SoftBank Vision Fund (together, “SoftBank”) in a $ 40 billion transaction. This acquisition will merge one of the leading manufacturers of graphics processors, motherboards and components for multimedia products for PCs and consoles such as the first Xbox, PlayStation 3 and Nintendo Switch with the manufacturer of ARM architecture-based processors boasting features including low power consumption. electric compared to performance, and for this mainly used in the mobile device industry, to create “the leading computing company for the age of artificial intelligence, accelerating innovation as it expands into large, fast-growing markets.” 180 billion ARM chips have been shipped to date by its licensees.

SoftBank will remain committed through its ownership stake in NVIDIA, which is expected to be less than 10%. Arm’s intellectual property will remain registered in the UK.

“Artificial intelligence is the most powerful technological force of our time and has ushered in a new era of computing,” said Jensen Huang, founder and CEO of NVIDIA. “In the years to come, trillions of computers with artificial intelligence will create a new Internet of Things that is thousands of times larger than the current Internet of People. Our combination will create a company that is fabulously positioned in the age of AI. Simon Segars and his team at Arm have created an amazing company that contributes to nearly every technology market in the world. By combining NVIDIA’s AI computing capabilities with Arm’s vast CPU ecosystem, we can advance computing from the cloud. smartphones, PCs, self-driving cars and robots, at the IoT edge and expand AI computing to every corner of the globe “.

This union should lead to great benefits for both companies, their customers and the industry in general.

SoftBank and Arm remain committed to meeting SoftBank’s commitments made with the acquisition of Arm in 2016, which are expected to be completed in September 2021. Following the close of the transaction, NVIDIA intends to maintain Arm’s name and strong brand identity and expand its base in Cambridge. An artificial intelligence research facility will also be built here to support healthcare, life sciences, robotics, self-driving cars and other fields. And to attract researchers and scientists from the UK and around the world here, NVIDIA plans to build a state-of-the-art AI supercomputer, powered by CPU Arm, which will be located in the “global center of excellence in AI research” called Arm. Cambridge.

“NVIDIA is the perfect match for Arm”, said Masayoshi Son, president and CEO of SBG. “Since we acquired Arm, we have honored our commitments and invested heavily in people, technology and research and development, thus expanding the business into new areas with high growth potential. Joining forces with a world leader in technological innovation creates new and exciting opportunities for Arm. This is a compelling combination that projects Arm, Cambridge and the UK at the forefront of some of the most exciting technological innovations of our time and is why SoftBank is thrilled to invest in Arm’s long-term success as a major shareholder. by NVIDIA. We look forward to supporting the continued success of the combined business. “

“Arm and NVIDIA share the vision and passion that ubiquitous and energy-efficient computing will help address the world’s most pressing issues, from climate change to healthcare, agriculture to education.” said Simon Segars, CEO of Arm. “Realizing 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 thrilled to be joining NVIDIA so we can write this next chapter together. “

Article dated 14.09.2020 updated on 08.02.2022.

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