Windows 10: NVIDIA to acquire Arm for $40 billion

Brink · Sep 14, 2020

Unites NVIDIAâs leadership in artificial intelligence with Armâs vast computing ecosystem to drive innovation for all customers

NVIDIA will expand Armâs R&D presence in Cambridge, UK, by establishing a world-class AI research and education center, and building an Arm/NVIDIA-powered AI supercomputer for groundbreaking research

NVIDIA will continue Armâs open-licensing model and customer neutrality and expand Armâs IP licensing portfolio with NVIDIA technology

Immediately accretive to NVIDIAâs non-GAAP gross margin and EPS

Consideration of $40 billion to be met through a combination of NVIDIA shares and cash

NVIDIA and SoftBank Group Corp. (SBG) today announced a definitive agreement under which NVIDIA will acquire Arm Limited from SBG and the SoftBank Vision Fund (together, âSoftBankâ&#157 in a transaction valued at $40 billion. The transaction is expected to be immediately accretive to NVIDIAâs non-GAAP gross margin and non-GAAP earnings per share.

The combination brings together NVIDIAâs leading AI computing platform with Armâs vast ecosystem to create the premier computing company for the age of artificial intelligence, accelerating innovation while expanding into large, high-growth markets. SoftBank will remain committed to Armâs long-term success through its ownership stake in NVIDIA, expected to be under 10 percent.

âAI is the most powerful technology force of our time and has launched a new wave of computing,â said Jensen Huang, founder and CEO of NVIDIA. âIn the years ahead, trillions of computers running AI will create a new internet-of-things that is thousands of times larger than todayâs internet-of-people. Our combination will create a company fabulously positioned for the age of AI.

âSimon Segars and his team at Arm have built an extraordinary company that is contributing to nearly every technology market in the world. Uniting NVIDIAâs AI computing capabilities with the vast ecosystem of Armâs CPU, we can advance computing from the cloud, smartphones, PCs, self-driving cars and robotics, to edge IoT, and expand AI computing to every corner of the globe.

âThis combination has tremendous benefits for both companies, our customers, and the industry. For Armâs ecosystem, the combination will turbocharge Armâs R&D capacity and expand its IP portfolio with NVIDIAâs world-leading GPU and AI technology.

âArm will remain headquartered in Cambridge. We will expand on this great site and build a world-class AI research facility, supporting developments in healthcare, life sciences, robotics, self-driving cars and other fields. And, to attract researchers and scientists from the U.K. and around the world to conduct groundbreaking work, NVIDIA will build a state-of-the-art AI supercomputer, powered by Arm CPUs. Arm Cambridge will be a world-class technology center.â

âNVIDIA is the perfect partner for Arm,â said Masayoshi Son, chairman and CEO of SBG. âSince acquiring Arm, we have honored our commitments and invested heavily in people, technology and R&D, thereby expanding the business into new areas with high growth potential. Joining forces with a world leader in technology innovation creates new and exciting opportunities for Arm. This is a compelling combination that projects Arm, Cambridge and the U.K. to the forefront of some of the most exciting technological innovations of our time and is why SoftBank is excited to invest in Armâs long-term success as a major shareholder in NVIDIA. We look forward to supporting the continued success of the combined business.â

âArm and NVIDIA share a vision and passion that ubiquitous, energy-efficient computing will help address the worldâs most pressing issues from climate change to healthcare, from agriculture to education,â said Simon Segars, CEO of Arm. âDelivering on 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 excited to be joining NVIDIA so we can write this next chapter together.â

Commitment to Arm and the UK

As part of NVIDIA, Arm will continue to operate its open-licensing model while maintaining the global customer neutrality that has been foundational to its success, with 180 billion chips shipped to-date by its licensees. Arm partners will also benefit from both companiesâ offerings, including NVIDIAâs numerous innovations.

SoftBank and Arm are fully committed to satisfying the undertakings made by SoftBank when it acquired Arm in 2016, which are scheduled to complete in September 2021. Following the closing of the transaction, NVIDIA intends to retain the name and strong brand identity of Arm and expand its base in Cambridge. Armâs intellectual property will remain registered in the U.K.

NVIDIA will build on Armâs R&D presence in the U.K., establishing a new global center of excellence in AI research at Armâs Cambridge campus. NVIDIA will invest in a state-of-the-art, Arm-powered AI supercomputer, training facilities for developers and a startup incubator, which will attract world-class research talent and create a platform for innovation and industry partnerships in fields such as healthcare, robotics and self-driving cars.

Additional Transaction Details

Under the terms of the transaction, which has been approved by the boards of directors of NVIDIA, SBG and Arm, NVIDIA will pay to SoftBank a total of $21.5 billion in NVIDIA common stock and $12 billion in cash, which includes $2 billion payable at signing. The number of NVIDIA shares to be issued at closing is 44.3 million, determined using the average closing price of NVIDIA common stock for the last 30 trading days. Additionally, SoftBank may receive up to $5 billion in cash or common stock under an earn-out construct, subject to satisfaction of specific financial performance targets by Arm.

NVIDIA will also issue $1.5 billion in equity to Arm employees.

NVIDIA intends to finance the cash portion of the transaction with balance sheet cash. The transaction does not include Armâs IoT Services Group.

The proposed transaction is subject to customary closing conditions, including the receipt of regulatory approvals for the U.K., China, the European Union and the United States. Completion of the transaction is expected to take place in approximately 18 months.

Conference Call and Webcast Details

NVIDIA will conduct a webcast at 5:30 a.m. PT on Monday, September 14, to discuss the transaction. The webcast is available on NVIDIAâs Investor Relations website at NVIDIA Corporation - Home. A webcast replay and a copy of the webcast presentation materials will also be available at NVIDIA Corporation - Home
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Source: NVIDIA to Acquire Arm for $40 Billion, Creating Worldâs Premier Computing Company for the Age of AI | NVIDIA Newsroom

See also:

Letter From Jensen: Creating a Premier Company for the Age of AI | NVIDIA Blog

NVIDIA and Arm to Create AI Research Center in Cambridge | NVIDIA Blog

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:)

btarunr · Sep 14, 2020

Softbank Acquires ARM for $32 Billion

Japanese conglomerate Softbank acquired British CPU architecture designer ARM in a USD $32 billion deal on Monday. Softbank's bid of $32 billion is a 43 percent premium over ARM's current valuation of $22.3 billion, and the Cambridge-based firm will recommend its shareholders to approve of its acquisition. Shares of ARM surged 45% on the LSE, adding £7.56 billion to its market value. The company reported revenues of $1.49 billion in 2015. ARM founder Herman Hauser, however, isn't happy with the board's decision. "This is a sad day for me and a sad day for technology in Britain," he stated.

ARM designs CPU architectures, which it then licenses to other processor and SoC manufacturers, many of which are fabless themselves, making it an intellectual property giant. None of ARM's products are "tangible" or physical. While Intel, for example, designs CPU architectures (eg: x86), implements it (eg: Core i7, Celeron), and manufactures it (at its Costa Rica and Malaysia fabs) ARM's product is not tangible. It has a CPU architecture, which clients such as Samsung, Huawei, and Qualcomm license, implement (eg: Exynos, Kylin, Snapdragon), and contract-manufacture, through fabs such as GlobalFoundries, TSMC, and ST Microelectronics.

Source: BBC

Aquinus · Sep 14, 2020

Softbank Acquires ARM for $32 Billion

Sad day indeed. Boards, shareholders pfft. At least they are being well compensated
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The article says nothing about the shareholders voting to do it. The article merely said:

Softbank's bid of $32 billion is a 43 percent premium over ARM's current valuation of $22.3 billion, and the Cambridge-based firm will recommend its shareholders to approve of its acquisition.
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Maybe they're already for it and approval is merely a formality?

Edit: Not to make this about politics again but, the decreasing value of the pound versus the yen might have something to do with it. It has been looking that way for the last year and it kind of accelerated after leaving the EU. The high bid might be a way of saying, "Here is your chance to jump ship after the fact."

Cliff S · Sep 14, 2020

Microsoft to acquire GitHub for $7.5 billion

No, they actually added some Linux support to Windows 10. The Windows Subsystem for Linux for example. Frequently Asked Questions (FAQ) | Microsoft Docs And SSH support.
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Linux stuff in the Store too but for BASH users.

Windows 10: NVIDIA to acquire Arm for $40 billion

NVIDIA to acquire Arm for $40 billion

NVIDIA to acquire Arm for $40 billion

NVIDIA to acquire Arm for $40 billion

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