SoftBank to Acquire ARM for $32.2 Billion

SoftBank Group (SBG) announced today its intention to buy UK-based chip designer ARM Holdings PLC for 24.3 billion pounds ($32.2 billion) in cash.

carousel-Softbank_ARMAt 17 pounds per share, SoftBank’s offer is a 43% premium over ARM’s stock price as of closing on Friday, July 15, 2016. SoftBank has also pledged to double ARM’s UK headcount over the next five years, and will keep the existing senior management team in place.

ARM posted a $661 million after-tax profit in 2015 on revenues of approximately $1.5 billion. The company’s strength and partnerships in development of the Internet of Things was a prime factor in SoftBank’s interest in the company.

“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,” said Masayoshi Son, Chairman and CEO of SoftBank. “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.”

ARM has particular strengths in mobile, automotive, consumer electronics and embedded intelligence, and counts more than 1,300 partners worldwide.

SoftBank held a press conference today to discuss the deal, which is available here.

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