Nvidia buys Arm for $40bn as tech M&A tipped to fly

mobile_ payment_Adobe_575x375.jpg
By Mike Turner
14 Sep 2020

Nvidia, the US technology company, has agreed to buy UK chipmaker Arm Holdings for up to $40bn in cash and shares, marking the largest of a spate of technology M&A as the coronavirus pandemic is expected to keep driving acquisition demand for the sector.

Nvidia has agreed to pay Arm owner SoftBank $21.5bn in common stock, $12bn in cash and $5bn if Arm hits certain financial targets. Nvidia will also issue $1.5bn in equity to Arm employees.

The cash portion will be financed with “balance sheet cash”, said Nvidia on Sunday. The company ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial