Arm centers its business on designing chips and licensing the intellectual property, especially in mobile computing, rather than chip manufacturing, for which it relies on partners.
Under the terms of the deal, NVIDIA will pay SoftBank USD 21.5 billion in stock and USD 12 billion in cash.
SoftBank could earn a further USD 5 billion if Arm hits performance targets while Arm employees will get USD 1.5 billion worth of Nvidia shares.
SoftBank bought Arm for about USD 32 billion in 2016 in an effort to cement the Japanese company's ambitions in advancing how various devices, including security cameras and household appliances, connect online and work together.
Nvidia CEO Jensen Huang said the company plans to keep Arm based at its headquarters in Cambridge, England, where it will build an artificial intelligence research center and hire more engineers.
This isn't about consolidation, this isn't about cost savings," Huang told reporters.
Regulators in the UK, China, the European Union and the United States will need to approve the deal, which will need about 18 months to complete, Nvidia said.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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