NVIDIA Pockets ARM for $40 Billion Unveiling the Biggest Chip Company M&A

On September 13th, NVIDIA announced the acquisition of UK-based semiconductor startup ARM for US$40 billion, unveiling the largest acquisition deal in the history of the chip industry. NVIDIA pledges to continue Arm’s open-licensing model and customer neutrality and expand Arm’s IP licensing portfolio with NVIDIA technology, as well as build on Arm’s R&D presence in the U.K., establishing a new global center of excellence in AI research at Arm’s Cambridge campus.

According to a definitive agreement, NVIDIA will pay a total of $21.5 billion in NVIDIA common stock and $12 billion in cash, which includes $2 billion payable at signing. 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. (Source)