SoftBank Group Corp. has acquired Graphcore, a British semiconductor chipmaker, as it aims to expand into the artificial intelligence sector, the two companies announced on Friday.
The Japanese technology investor said it purchased Graphcore from investors, including Schroder British Opportunities Trust PLC, an investment fund. The financial terms of the deal were not disclosed.
SoftBank Buys UK Chipmaker : Deal Details and Financial Impact
Schroder, which first backed Graphcore in 2020, stated it will earn back its original capital investment in the company, minus expenses. The investment fund added that it valued its holding in Graphcore at a lower amount, resulting in a 22% increase based on figures from the first quarter of 2024.
Morrison Foerster LLP advised SoftBank on the deal. The global team was led by Ken Siegel, managing partner of the Tokyo office and head of the mergers and acquisitions team, along with partner Gary Brown and counsel Luke Rowland in London.
Orrick Herrington & Sutcliffe LLP represented Graphcore, with a team led by corporate partners James Connor and Chris Grew. Counsel information for Schroder was not immediately available.
Strategic Vision and Future Prospects
Vikas Parekh, managing partner at SoftBank Investment Advisers, said the acquisition reflects a rapidly growing demand for AI computing power across various sectors. “Society is embracing the opportunities offered by foundation models, generative AI applications, and new approaches to scientific discovery,” Parekh stated.
