The deal, announced on Sunday, will be financed through a combination of cash and stocks, the companies said in a joint statement.
Nvidia said on Sunday it plans to maintain its Arm headquarters in Cambridge and expand its campus with a new research facility.
“ARM ‘s business model is excellent. We will maintain the open licensing model and customer neutrality, serving customers in any industry, worldwide and further expanding ARM [intellectual property] license portfolio, “Huang wrote.
The deal is likely to come under scrutiny in the UK, where some politicians are worried about retaining jobs at ARM. Nvidia rivals – who buy chip designs from ARM – are also likely to oppose it.
The prime minister’s spokesman said on Monday that the British government would not hesitate to investigate any takeover that could have a significant impact on the country.
Another sale of assets for SoftBank
“The combination is likely to raise SoftBank’s share price in Tokyo,” Jeffrey Halley, senior market analyst for Asia Pacific in Oanda, wrote in a note to clients.
Under the deal, Nvidia will pay about $ 12 billion in cash and $ 21.5 billion in stock. SoftBank will receive a less than 10% stake in Nvidia and the Japanese company will also be eligible to pay up to $ 5 billion if ARM meets “specific financial performance targets,” according to SoftBank. The company did not disclose the goals.
The agreement is expected to be completed within 18 months. It must first pass regulatory approvals from the United Kingdom, the European Union, the United States and China.
– Luke McGee and Charles Riley contributed to this report.