Nvidia Abandons Arm Deal, Segars Steps Aside for IPO

By Nitin Dahad, EETimes (February 8, 2022)

Regulators prevailed, hobbling Nvidia’s proposed acquisition of Arm Ltd.

Citing “significant regulatory challenges,” Nvidia announced this week it is abandoning the Arm acquisition unveiled to much fanfare in September 2020. In response, Arm named Rene Haas as its new CEO, replacing Simon Segars as the chip IP vendor prepares for an initial public offering.

Haas will oversee Arm’s IPO. Segars will “support the leadership transition in an advisory role for Arm”.

The initial $40 billion deal was fraught from the beginning, with critics and, eventually, European and U.S. regulators raising objections about the transaction’s adverse impact on Arm’s licensees. Nvidia argued unsuccessfully to assuage those concerns.

SoftBank Group acquired Cambridge-based Arm in 2016 for $32 billion, but moved to cash-out fours years later. After talking to several suitors, Nvidia emerged as a buyer, its data center prowess seemingly a perfect match. Based on Nvidia’s share price, the value of the proposed deal eventually rose to $66 billion.

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