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.”

July's issue of Business Review Australia & Asia is now live. 

Follow @BizRevAsia and @MrNLon on Twitter.

 

 

Share

Featured Articles

Top 10 female executives leading Japan's charge for change

As Japan pledges a 30% target for women executives at big firms by 2030, we spotlight 10 female corporate leaders blazing a trail in the country

Top 10 most valuable unicorns in China – phones to drones

Home to the world’s most valuable unicorn, not to mention the fastest growing, China may be trailing the US on numbers, but it is catching up – and fast

Top 10 fastest-growing energy companies in the APAC region

Business Chief takes a look at the top 10 fastest-growing energy companies in the APAC region, according to rankings from S&P Global Commodity Insights

Top 10 Chief Financial Officers in India

Corporate Finance

Top 10 largest companies Malaysia and the CEOs who helm them

Leadership & Strategy

5 high-profile CEO moves across Asia-Pacific this month

Leadership & Strategy