SoftBank nears deal to acquire chip firm Ampere
The deal under discussion could be valued at USD 6.5 billion, including debt, and an announcement in this regard is possible in the next few weeks, according to Bloomberg.
Japan’s SoftBank Group is in advanced talks to acquire Oracle-backed semiconductor firm Ampere Computing, according to a report by Bloomberg.
The deal under discussion could be valued at USD 6.5 billion, including debt, and an announcement in this regard is possible in the next few weeks.
That’s down from the USD 8 billion valuation in 2021, when SoftBank was in talks to buy a minority stake.
Ampher makes processors for data center machinery using Arm’s technology.
Bloomberg had earlier reported that SoftBank and chip designer Arm Holdings had expressed interest in a takeover of Ampere.
Arm Holdings is majority-owned by SoftBank.
If the agreement goes ahead, it will be another instance of chip firms trying to capitalize on a spending boom in AI.
Oracle, which owns 29% of Ampere, is also believed to be interested in future investment opportunities to gain control of the company. Oracle has invested hundreds of millions of dollars in Ampere.
Founded by former Intel president Renee James, Ampere uses technology from Arm to make central processing chips that are used by companies like Oracle and Google. Its USP is chips that are more energy efficient.
Meanwhile, giving a cautious forecast, Arm expects revenue of USD 1.18 billion to $1.28 billion in the fiscal fourth quarter.
