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14.09.2020

Nvidia buys Britain’s Arm from SoftBank

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SoftBank will become the largest shareholder in Nvidia under the deal

Stocks impacted: Nvidia (NVDA), SoftBank (9984)

Nvidia said over the weekend that it would acquire the British chip designer Arm from SoftBank in a deal worth about $40 billion. Under the deal, SoftBank will become the largest shareholder in Nvidia. The firm will pay the Japanese group $21.5 billion in common stock and $12 billion in cash, including $2 billion on signing. Nvidia said it will license its flagship graphical processor unit through Arm's network of silicon partners. Arm licenses its chip designs and technology to customers like Qualcomm Inc, Apple, and Samsung Electronics. Under the deal, Arm will not become subject to U.S. export controls. After the announcement, SoftBank stocks surged nearly 9% on Monday. Nvidia shares fell 1.20% on Friday.

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