Japanese SoftBank Acquires UK-Based ARM For $32 Billion
Japan’s SoftBank Group Corp. is to acquire UK-based chip designer ARM Holdings PLC in an all-cash deal of $32 billion. Both the companies announced Monday to have agreed to the terms and conditions.
ARM Holdings is a semiconductor company and is well known for supplying chips to Apple for use in iPhones.
Chief Executive of the Japanese telecommunications giant, Masayoshi Son, has taken over charge of the company last month after his former deputy and designated successor Nikesh Arora resigned.
Son said acquiring ARM is one of the most important acquisitions they have ever made and expect it to be a key pillar in their growth strategy.
Immediately after the announcement the shares of the internet and telecommunications conglomerate rose to about 45 percent in London market.
SoftBank owns mobile carriers in the US as well as Japan and invests in online startups in countries like China and India. In recent months the company has been found raising cash to pay down debt and bolster its war chest too.
One of the biggest deals in the move was selling of around $10 billion worth of shares to Alibaba Group Holding Ltd.
Meanwhile, ARM has a strong portfolio of intellectual property for chips used in smartphones. Deal between the two companies has taken place less than a month after Brexit, Britain’s decision to leave European Union (EU).