Microchip giant set for £24bn takeover
THE company which designs Apple’s iPhone microchips is set to be bought in a deal worth £24.3bn.
ARM Holdings, based in Cambridge with 100 engineers based in Sheffield, has agreed to the deal with Japanese firm Softbank following recommendations from the board.
It is believed that Softbank want to capitalise on ARM’s microchips, used in products such as washing machines as well as smartphones, to grow the “internet of things” which would allow everyday items to send and receive data.
It has promised to double the UK workforce in five years
Softbank will pay £17 per share for the company.
Masayoshi Son, Chairman and CEO of SoftBank said: “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.
“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.”
Stuart Chambers, Chairman of ARM said: “It is the view of the Board that this is a compelling offer for ARM Shareholders, which secures the delivery of future value today and in cash.
“The Board believes that by accessing all the resources that SoftBank has to offer, ARM will be able to further accelerate the use of ARM-based technology wherever computing happens.”
The deal puts the Government under new Prime Minister Theresa May in a difficult position. Whilst wanting to encourage international investment, Mrs May also said that takeovers such as this would be monitored as “bad for the national interest” following the drop in the value of the pound.
Founded in 1993, ARM employs 3,000 people.
