According to sources, SoftBank Group will sell fewer Arm shares in the initial public offering and maintain a stake of nearly 90% in the company with the IPO capital raise anticipated to be less than the range of $8bn to $10bn which was planned previously
Softbank Group has reportedly taken full ownership of UK-based semiconductor and software design company Arm in a deal that values the latter at $64bn.
The Japanese company acquired the 25% interest in Arm that it did not already own from its Vision Fund unit, reported Reuters, citing sources with knowledge of the matter.
The sources also said that SoftBank Group will sell fewer Arm shares in the initial public offering (IPO) and would likely maintain a stake of nearly 90% in the company.
Arm’s IPO capital raise is anticipated to be less than the range of $8bn and $10bn which was planned previously.
SoftBank Group is also currently in talks to list the UK-based company at a valuation of $60bn to $70bn in the IPO, which is slated to take place in September 2023.
The Japanese investment holding company took Arm private in 2016 for $32bn and divested a 25% stake in the company to Vision Fund 1 for $8bn in the following year.
In September 2020, Nvidia agreed to acquire Arm from SoftBank Group and Vision Fund in a cash and stock deal that was valued at $40bn.
However, the parties scrapped the transaction in February 2022 due to significant regulatory obstacles, which prevented the deal from getting closed.
As per the terms of the deal, Nvidia was to pay $21.5bn in the form of its shares plus $12bn in cash to SoftBank Group.
Following the termination of the deal, the semiconductor and software design company commenced preparations for a public offering within the fiscal year ending 31 March 2023.
Headquartered in Cambridge, Arm offers processor IP technology and a broad range of processors, designed to meet the performance, power, and cost requirements of every device.
The company’s central processing units (CPUs) and neural processing units (NPUs) include Cortex-A, Cortex-R, Cortex-M, Neoverse, Ethos, and SecurCore.