NVIDIA Should Finish Arm Acquisition By Next Week For Roughly $40 Billion Graphics processing unit (GPU) designer NVIDIA Corporation (
NASDAQ:NVDA 486.58 -1.20%) is in the final stages of its acquisition of British chip house Arm technologies reports the
Wall Street Journal. The deal is now valued at $40 billion, a drop from earlier
reports that claimed that Softbank's C.E.O Masayoshi Son was demanding roughly $52 billion for the chip designer.
NVIDIA and Arm have been conducting exclusive talks for the acquisition over the course of the past few weeks, and The Journal's sources are hopeful that the matter might reach a close as soon as next week, provided that the talks do not fall through. The transaction will be valued in-between $40 billion - $45 billion, believe the sources, and NVIDIA will pay in both cash and in stock.
NVIDIA had roughly $11 billion in cash, which increased to $15 billion at the end of its first quarter.
By acquiring Arm, NVIDIA will be able to
drastically expand the scope of its current operations. While currently the company designs and sells GPUs for personal computers, enterprise application and automotive customers, by bringing the chip design house under its wing, NVIDIA will be able to target the vast smartphone and Internet of Thing (IoT) market – in addition to gaining access to Arm's critical competencies of designing central processing units (CPUs) for servers.
Through combining these CPUs with its GPUs, NVIDIA will be able to provide its customers with a one-stop holistic solution that will enable the company to push its highly performant GPUs to potential new customers and increase market penetration as a result of this.
https://wccftech.com/nvid...cquisition-40-billion/