The contract announced Sunday will be financed by a mix of cash and stocks, the companies said in a joint statement.
NVIDIA announced Sunday that it plans to maintain Arm’s headquarters in Cambridge and expand the campus with new research facilities.
“ARM’s business model is great. We maintain our open licensing model and customer neutrality to serve customers in all industries and [intellectual property] License portfolio,” wrote Huang.
The deal is likely to be subject to considerable scrutiny in the UK, where some politicians are concerned about retaining jobs in ARM. Nvidia’s competitors buying chip designs from ARM are also likely to object.
The prime minister’s official spokesman said Monday that the British government would not hesitate to investigate acquisitions that could have a significant impact on the UK.
Sale of another SoftBank asset
“This combination will boost SoftBank’s share price in Tokyo,” said Jeffrey Halley, Senior Market Analyst for Oanda’s Asia Pacific region, to clients.
Under the contract, Nvidia will pay about $12 billion in cash and $21.5 billion in shares. SoftBank will receive less than 10% stake in Nvidia, and Japanese companies can receive payouts of up to $5 billion if ARM meets “specific financial performance targets”. The company did not disclose its goals.
This deal is expected to close within 18 months. First, it must pass regulatory approvals from the UK, the European Union, the US and China.
— Luke McGee and Charles Riley contributed to this report.