Popular chip designer ARM set to be acquired by Softbank

ARM, the British chip designer responsible behind the A-series processors used in Apple’s iOS devices, looks set to be bought by Japanese telecoms company Softbank.

The deal will need to be approved by shareholders, but with ARM recommending it and a valuation 43% above last week’s closing price, it looks likely to go through. It is, however, possible that other companies may make their own bid for the company.

Both Intel and Apple have been suggested as potential bidders …

ARM designs many of the chips used in Android phones as well as Apple’s A-series processors, and is expected to grow its business by designing chips for Internet of Things devices. Last year, ARM processors were used in 15B devices.

If the deal goes through, ARM says that it will remain UK-based, and Softbank says it will double the number of employees within five years.

“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,’” Mr. Son said. “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,” he said.
ARM CEO Simon Segars said in a video that the acquisition would “leave ARM’s successful partnership business model, culture and brand unchanged.”
RaphBlog.Com.NG. Powered by Blogger.