SoftBank Group has entered into one of the largest deal in the technology sector to acquire Cambridge-based firm ARM for GBP 24.0 billion (approximately USD 31.0 billion) - the largest takeover of a British company by an Asian company and the largest in European technology business.
Softbank aims to leverage ARM which is one of the world’s leading technology companies, with strong capabilities in global semiconductor intellectual property to tap the growing global Internet-of-Things(IoT) business.
“ARM will be an excellent strategic fit within the SoftBank group as we invest to capture the very significant opportunities provided by the ‘Internet of Things,’” said SoftBank Chairman and CEO Masayoshi Son in a statement.
The U.K.-based designer of the microprocessors powers more than 95% of the world’s smartphones, including Apple's and Samsung's. The 25-year-old British company designs the processor architecture and licenses it to companies such as Qualcomm and Samsung and Apple.
The Japanese Operator plans to fund the deal with its own cash reserves and a long term loan from Japan's Mizuho Bank. After the deal closes, ARM that has over 4000 employees will remain based in Cambridge. SoftBank intends to double the staff headcount in the UK over the next five years.
The announcement comes as a major boost to the Operator after the recent resignation of its COO and President, Nikesh Arora.
