SoftBank to Acquire Ampere Computing for $6.5B

Ampere Acquisition by SoftBank Imminent

Ampere, the semiconductor firm established by former Intel executive Renee James, is reportedly nearing a sale to SoftBank. This development marks the latest chapter in the ongoing discussions surrounding the company's future ownership.

Deal Valuation and Previous Talks

According to reports from Bloomberg, the potential deal could value Ampere at approximately $6.5 billion. This represents a decrease from the $8 billion valuation in 2021, when SoftBank initially explored acquiring a minority stake.

Strategic Alignment for SoftBank

Ampere specializes in the design of ARM chips specifically for data centers. This aligns well with SoftBank’s existing portfolio, as it holds a majority ownership position in chip designer ARM Holdings.

Ampere has not yet issued a comment regarding the reported acquisition.

The Founding of Ampere

The company was founded in 2017 by Renee James following her departure from Intel after a 28-year tenure. She had been considered for the CEO position at Intel but was ultimately passed over.

At the time of founding, James was engaged in dealmaking with the private equity firm Carlyle and served on the board of Oracle.

Acquisition of Macom's Chip Business

James identified an opportunity to acquire a portion of Macom’s chip business and presented the idea to both Carlyle and Oracle. Both entities agreed to provide funding for the acquisition.

A Pioneering Female Leader

With the establishment of Ampere, James became one of only two women leading a semiconductor company. The other is Lisa Su, CEO of AMD.

Innovative ARM-Based Data Center Chips

James’ vision was to develop data center chips based on low-energy ARM designs, a relatively new approach at the time. Oracle quickly became a significant customer, alongside other major cloud service providers like Microsoft.

Oracle's Increasing Stake

However, in October, Oracle’s annual report revealed a substantial ownership stake in Ampere, holding 29% of the company.

Furthermore, Oracle possessed options and convertible notes that could grant them a controlling interest in Ampere.

Potential for Full Control

Oracle stated in its filing that exercising these options, either by themselves or with co-investors, would result in gaining control of Ampere and consolidating its financial results.

James' Departure from Oracle's Board

The same filing also announced James’ departure from Oracle’s board following the conclusion of her term in mid-November. She had been a board member since 2015.

Ownership Details Remain Private

As Ampere is a privately held company, the extent of James’ current ownership remains undisclosed.

Ongoing Negotiations

Rumors of a potential sale have circulated since September, but the deal with SoftBank is not yet finalized. Sources indicate that the terms are subject to change, and the acquisition may not ultimately proceed.