NVIDIA Corp (NASDAQ:NVDA) is trading higher Wednesday following the company's termination of its planned acquisition of British semiconductor company Arm Limited from SoftBank.
The deal was originally announced in September 2020 and valued around $40 billion in what would have been the biggest semiconductor deal in history.
Nvidia and SoftBank agreed to terminate the agreement on Monday, citing significant regulatory challenges. Arm will now begin preparing for a public offering.
"Arm is at the center of the important dynamics in computing. Though we won’t be one company, we will partner closely with Arm," said Jensen Huang, founder and CEO of Nvidia. "I expect Arm to be the most important CPU architecture of the next decade."
In accordance with the terms of the agreement, SoftBank will retain the $1.25 billion prepaid by Nvidia and Nvidia will retain its 20-year Arm license.
Nvidia is a designer of discrete graphics processing units that enhance the experience on computing platforms.
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NVDA Price Action: Nvidia has traded as low as $115.66 and as high as $346.47 over a 52-week period.
The stock was up 4.64% at $262.65 at time of publication.
Photo: courtesy of Nvidia.
