Disclaimer: We may earn a commission if you make any purchase by clicking our links. Please see our detailed guide here.

Follow us on:

Google News
Whatsapp

ARM to retain its headquarters in the UK, as per a legal agreement

Bipasha Mandal
Bipasha Mandal
Bipasha Mondal is writer at TechGenyz

Join the Opinion Leaders Network

Join the Techgenyz Opinion Leaders Network today and become part of a vibrant community of change-makers. Together, we can create a brighter future by shaping opinions, driving conversations, and transforming ideas into reality.

According to a few foreign media reports, NVIDIA’s CEO Huang Renxun has agreed to sign a legally binding protection agreement that will compel him to leave the headquarters of the company ARM in the United Kingdom, while retaining ARM’s presence in the UK Job position.

The clause that Renxun agreed to, states that as long as the ARM employees are willing to work in the UK, the company’s headquarters will stay in the country. NVIDIA’s CEO has further added that in the UK headquarters, the company will increase the number of employees at ARM, Cambridge.

However, he has also cleared that the increase of employees would not guarantee to increase the number of jobs. This decision comes after SoftBank Group and Nvidia reached an agreement where the two parties had decided that SoftBank will sell ARM to Nvidia for the whopping price of $40 billion.

According to the mutual agreement, the acquisition will be implemented in the form of stocks and cash. Nvidia will issue $21.5 billion worth of shares to SoftBank and pay $12 billion in cash which will also include an advance payment of $2 billion.

The legal agreement to leave the headquarters where it currently is, arose after the members of Congress, the labour union, and ARM’s co-founder Hermann Hauser expressed their concerns regarding this matter.

They had feared that after the completion of the acquisition the headquarter might be moved to the U.S. This could have led to ARM’s business model, and to prevent it, Hauser pushed the British government to force the chipmaker to make a legally binding commitment to retain ARM’s jobs in the UK.

SoftBank had acquired ARM at the price of $32 billion back in 2016. ARM licenses its technology to many famous software and OEM manufacturers, and more than 95% of smartphones and tablets make use of ARM architecture.

Join 10,000+ Fellow Readers

Get Techgenyz’s roundup delivered to your inbox curated with the most important for you that keeps you updated about the future tech, mobile, space, gaming, business and more.

Recomended

Partner With Us

Digital advertising offers a way for your business to reach out and make much-needed connections with your audience in a meaningful way. Advertising on Techgenyz will help you build brand awareness, increase website traffic, generate qualified leads, and grow your business.

Power Your Business

Solutions you need to super charge your business and drive growth

More from this topic