Japan's SoftBank to acquire ARM Holdings
Japan’s SoftBank is acquiring the UK’s ARM Holdings, a technology company based in the UK, for £24 billion.
ARM Holdings designs smartphone microchips and employs around 3,000 from its Cambridge office.
News of the deal led to shares in ARM Holdings rising by 45 percent, which added £7.56 billion to the company’s worth. As a result of the acquisition, ARM will become a wholly-owned subsidiary of SoftBank.
SoftBank has made assurances that it plans to double the headcount in the UK, as well as overseas, over the next five years. It says that the acquisition means the combined group can ‘fully capture the internet of things opportunity’.
Masayoshi Son, Chairman and CEO of SBG, said: “We have long admired ARM as a world renowned and highly respected technology company that is by some distance the market-leader in its field. 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'. This investment also marks our strong commitment to the UK and the competitive advantage provided by the deep pool of science and technology talent in Cambridge. As an integral part of the transaction, we intend to at least double the number of employees employed by ARM in the UK over the next five years. SoftBank intends to invest in ARM, support its management team, accelerate its strategy and allow it to fully realise its potential beyond what is possible as a publicly listed company. It is also intended that ARM will remain an independent business within SoftBank, and continue to be headquartered in Cambridge, UK. This is one of the most important acquisitions we have ever made, and I expect ARM to be a key pillar of SoftBank’s growth strategy going forward.”