Official! Nvidia terminates a $66 billion acquisition of ARM

According to IT House on February 8, Nvidia inc. and SoftBank Group (SBG) today announced the termination of a previously announced deal in which Nvidia acquired Arm Limited (Arm) from SoftBank for $66 billion.

SoftBank announced today that it terminated its previously announced acquisition of Arm Limited from SBG by NVIDIA. Despite the parties' sincere efforts, the parties agreed to terminate the agreement due to significant regulatory challenges that hindered the completion of the transaction. Arm will now begin preparing for an IPO.

Jen-Hsun Wong, founder and CEO of NVIDIA, said: "Arm has a bright future and we will continue to support them as a proud licensee for decades to come. Arm is at the center of important dynamics in computing. While we won't be a company, we will work closely with Arm. The significant investment Masa has made gives Arm the ability to expand the range of Arm CPUs from client-side computing to supercomputing, cloud computing, artificial intelligence, and robotics. I expect Arm to be the most important CPU architecture for the next decade."

SoftBank also announced today that, in coordination with Arm, it will begin preparations for Arm's IPO for the fiscal year ending March 31, 2023. SoftBank believes Arm's technology and intellectual property will continue to be at the center of mobile computing and AI development.

"Arm has become an innovation hub not only in the mobile phone revolution, but also in cloud computing, automotive, The Internet of Things and metaversy, and has entered its second phase of growth," said Masayoshi Son, a representative director, corporate official, chairman and CEO of SoftBank Group of Companies.

Mr Sun continued, "I would like to thank Jen-Hoon Wong and his excellent team at NVIDIA for trying to bring these two great companies together and wish them all the best. ”

Nvidia and SoftBank have announced that they have reached a definitive agreement under which Nvidia will acquire Arm from SoftBank on September 13, 2020.

IT House understands that under the terms of the agreement, SoftBank will retain the $1.25 billion that Nvidia has prepaid, which will be recorded as profit in the fourth quarter, while Nvidia will retain its 20-year Arm license.