SoftBank is about to sell British chipmaker Arm Holdings to Nvidia Corp. for more than $40 Billion, WSJ reports on Saturday. SoftBank acquired Arm Holdings for $32 Billion in 2016. Which shows a 5.7% annualized return for the Japanese technology conglomerate.

  • Arm and Nvidia held exclusive negotiations for several weeks. The agreement could be signed early this week, considering it isn’t rejected at the last moment.
  • The deal is about to go in cash-and-stock. It can be one of the largest M&A transactions in 2020 and possibly the biggest semiconductor deal ever. 
  • Arm designs microprocessors for most of the world’s smartphones. While Arm doesn’t manufacture its own chips, it licenses the instruction set, creates core designs, and references design to other companies. Their clients are Apple, Qualcomm, Samsung, AMD, Amazon, and even Intel.

Merging forces with Nvidia Corp, the united company could be a powerhouse in the chip & semiconductor market.