The British developer of processor architectures Arm is trying to refute periodic rumors about intentions to start producing processors under its own brand, but fresh information about the holding’s interests in the investment field makes it clear that, together with parent SoftBank, this company is eyeing the purchase of Ampere Computing assets.
Image source: Ampere Computing
Oracle-backed startup Ampere Computing develops server processors. Recently, this company began looking for strategic investors, and the Arm holding expressed its interest in purchasing the bulk of its assets. Negotiations may not be successful, and startup Ampere Computing may find other buyers, as Bloomberg explains.
Since the processors Ampere is developing use an Arm-compatible architecture, the former company is a client of the latter. In 2021, SoftBank reportedly already tried to buy a stake in Ampere, then the latter’s capitalization was estimated at $8 billion. It is difficult to say what amount we are talking about now. Ampere hired consultants to find strategic investors back in September last year. Ampere is currently 29% owned by Oracle, but the latter is not opposed to increasing its stake. Ampere employs many people from Intel, including senior management.
Nearly three years ago, Ampere was considering an IPO as a way to raise investment, but now the terms may be less attractive, so an outright asset sale may be a better alternative. Last year, according to Bloomberg, transactions among companies related to the design and production of chips more than doubled in volume to $31 billion.