NVIDIA and SoftBank Group Announce Termination of NVIDIA’s Acquisition of Arm Limited

Soft­Bank to Explo­re Arm Public Offering

SANTA CLARA, Calif., and TOKYO ‚Äď Feb. 7, 2022 ‚Äď NVIDIA and Soft¬≠Bank Group Corp. (‚ÄúSBG‚ÄĚ or ‚ÄúSoft¬≠Bank‚ÄĚ) today announ¬≠ced the ter¬≠mi¬≠na¬≠ti¬≠on of the pre¬≠vious¬≠ly announ¬≠ced tran¬≠sac¬≠tion wher¬≠eby NVIDIA would acqui¬≠re Arm Limi¬≠t¬≠ed (‚ÄúArm‚ÄĚ) from SBG. The par¬≠ties agreed to ter¬≠mi¬≠na¬≠te the Agree¬≠ment becau¬≠se of signi¬≠fi¬≠cant regu¬≠la¬≠to¬≠ry chal¬≠lenges pre¬≠ven¬≠ting the con¬≠sum¬≠ma¬≠ti¬≠on of the tran¬≠sac¬≠tion, despi¬≠te good faith efforts by the par¬≠ties. Arm will now start pre¬≠pa¬≠ra¬≠ti¬≠ons for a public offering. 

‚ÄúArm has a bright future, and we‚Äôll con¬≠ti¬≠nue to sup¬≠port them as a proud licen¬≠see for deca¬≠des to come,‚ÄĚ said Jen¬≠sen Huang, foun¬≠der and chief exe¬≠cu¬≠ti¬≠ve offi¬≠cer of NVIDIA. ‚ÄúArm is at the cen¬≠ter of the important dyna¬≠mics in com¬≠pu¬≠ting. Though we won‚Äôt be one com¬≠pa¬≠ny, we will part¬≠ner clo¬≠se¬≠ly with Arm. The signi¬≠fi¬≠cant invest¬≠ments that Masa has made have posi¬≠tio¬≠ned Arm to expand the reach of the Arm CPU bey¬≠ond cli¬≠ent com¬≠pu¬≠ting to super¬≠com¬≠pu¬≠ting, cloud, AI and robo¬≠tics. I expect Arm to be the most important CPU archi¬≠tec¬≠tu¬≠re of the next decade.‚ÄĚ

SBG today also announ­ced that, in coor­di­na­ti­on with Arm, it will start pre­pa­ra­ti­ons for a public offe­ring of Arm within the fis­cal year ending March 31, 2023. SBG belie­ves Arm’s tech­no­lo­gy and intellec­tu­al pro­per­ty will con­ti­nue to be at the cen­ter of mobi­le com­pu­ting and the deve­lo­p­ment of arti­fi­ci­al intelligence.

‚ÄúArm is beco¬≠ming a cen¬≠ter of inno¬≠va¬≠ti¬≠on not only in the mobi¬≠le pho¬≠ne revo¬≠lu¬≠ti¬≠on, but also in cloud com¬≠pu¬≠ting, auto¬≠mo¬≠ti¬≠ve, the Inter¬≠net of Things and the meta¬≠ver¬≠se, and has ente¬≠red its second growth pha¬≠se,‚ÄĚ said Masay¬≠o¬≠shi Son, Repre¬≠sen¬≠ta¬≠ti¬≠ve Direc¬≠tor, Cor¬≠po¬≠ra¬≠te Offi¬≠cer, Chair¬≠man & Chief Exe¬≠cu¬≠ti¬≠ve Offi¬≠cer of Soft¬≠Bank Group Corp. ‚ÄúWe will take this oppor¬≠tu¬≠ni¬≠ty and start pre¬≠pa¬≠ring to take Arm public, and to make even fur¬≠ther progress.‚ÄĚ

Mr. Son con¬≠tin¬≠ued, ‚ÄúI want to thank Jen¬≠sen and his talen¬≠ted team at NVIDIA for try¬≠ing to bring tog¬≠e¬≠ther the¬≠se two gre¬≠at com¬≠pa¬≠nies and wish them all the success.‚ÄĚ

NVIDIA and SBG had announ­ced that they had ente­red into a defi­ni­ti­ve agree­ment, under which NVIDIA would acqui­re Arm from Soft­Bank, on Sep­tem­ber 13, 2020. In accordance with the terms of the agree­ment, SBG* will retain the $1.25 bil­li­on pre­paid by NVIDIA, which will be recor­ded as pro­fit in the fourth quar­ter, and NVIDIA will retain its 20-year Arm license.

* 24.99% of Arm shares are attri¬≠bu¬≠ta¬≠ble to Soft¬≠Bank Visi¬≠on Fund 1.