Rumble Inc. (NASDAQ:RUM) announced on Monday that it will acquire German data center operator Northern Data AG (TG: NB2) in an all-stock transaction valued at approximately $767 million, as the video platform moves to expand its cloud and AI infrastructure capabilities.
Under the agreement, Rumble will issue 2.0281 new Class A shares for each Northern Data share, equivalent to roughly $11.95 per share. According to Investing.com calculations, this represents a 15% discount compared with Northern Data’s last closing price of €11.90 ($13.76) on the Frankfurt Stock Exchange.
Rumble also said it may pay up to $200 million in cash to Northern Data shareholders if certain performance milestones are achieved.
In a key development, cryptocurrency firm Tether and other investors holding a combined 72% stake in Northern Data have agreed to sell their shares to Rumble at the same exchange ratio. Tether currently owns about 48% of Rumble, further strengthening the strategic ties between the two companies.
The acquisition follows Rumble’s August disclosure that it was exploring a potential deal with Northern Data, with Bloomberg reporting over the weekend that the agreement was near completion.
The transaction will provide Rumble access to Northern Data’s extensive GPU infrastructure, which includes a fleet of NVIDIA Corporation (NASDAQ: NVDA) graphics processing units and four owned data centers.
Rumble’s move underscores the growing strategic importance of data centers and cloud infrastructure as essential enablers of the artificial intelligence revolution, a sector that continues to attract significant investment and corporate consolidation.