SoftBank to acquire Ampere Computing in $6.5bn deal

SoftBank Group (SBG) has agreed to acquire Ampere Computing, a US-based semiconductor design company, for $6.5bn.

As per the deal, Ampere Computing will be acquired by SBG through its subsidiary Silver Bands 6 (US) Corp.

Ampere Computing is engaged in developing high-performance, energy-efficient processors tailored for cloud computing and AI workloads. The company currently employs approximately 1000 engineers.

The acquisition will proceed through a two-step process. SB6 will first acquire all equity interests in entities holding stakes in Ampere.

This will be followed by a reverse triangular merger, in which a wholly owned SB6 subsidiary, Summit Bright LLC, will merge into Ampere.

The merger will result in Ampere becoming an indirect, wholly owned subsidiary of SBG, with cash consideration provided to eligible equity holders at the time of completion.

Under the deal, Ampere’s biggest investors, Carlyle Group and Oracle will divest their respective stakes in the company to SoftBank.

The transaction, which has been approved by SBG’s board of directors, is subject to regulatory approvals, including antitrust clearance in the US and approval by the Committee on Foreign Investment in the United States.

Upon completion of the deal, which is expected in the latter half of 2025, Ampere will become an indirect, wholly owned subsidiary of SBG.

Currently, Carlyle Partners VI Denver owns a 59.65% stake in Ampere Computing while Oracle Project Denver owns 32.27% interest.

Arm Technology Investment Limited, an affiliate of Arm, holds 8.08% stake in Ampere. SBG holds majority stake in Arm.

Recently, Malaysia entered into a partnership with Arm, committing to pay $250m (RM1.07bn) to acquire the company’s chip design plans.