SoftBank completes $31 billion acquisition of ARM

SoftBank surprised the technology world with a plan to acquire British chip designer ARM Holdings for £23.4 billion ($31.4 billion) back in July, the biggest ever purchase of a European technology company. After less than two months, SoftBank is announcing today that the transaction is complete. The total acquisition price is approximately £24 billion ($31 billion), and ARM will now be delisted from the London Stock Exchange tomorrow.

SoftBank's purchase of ARM is the latest in a line of acquisitions in recent years for the Japanese company, including the $20 billion Sprint acquisition, and a $15 billion investment in Vodafone's Japanese division. ARM is well-known for designing chips and licensing them to companies like Apple and Samsung, and ARM-designed chips dominate mobile computing in phones and tablets. Fifteen billion ARM-designed chips shipped last year alone, and around half of those were in mobile devices.

SoftBank is expected to use the ARM deal to bolster its Internet of Things plans. While ARM only made around $1.5 billion in revenue last year, its low-power and efficient chips are shifting computing worldwide. SoftBank's investment is clearly long-term, and it's likely another wild bet that will pay off for the company.

Comments

Good ol’ Brexit, selling our companies off taking back control one step at a time!

What a mess we are in!!

what has this got to do with leaving the European Union??? If you want to blame anyone, blame the shareholders.

The Brexit lowered the value of the £ which made the acquisition much cheaper.

I might be wrong but I’d imagine that this was a strategic decision that would have happened regardless of saving a few quid on the deal. Brexit has zero to do with this. This is SoftBank wanting to safeguard its future and build up. They’re merely doing what all tech companies with deep pockets do.
ARM is a good deal for anyone looking to buy them and smartly capitalise on the purchase at (almost) any price. As a brit I’m pissed they have been sold but, unlike France, Germany and to some extent the US there’s very little in the way of government protectionism when it comes to companies being bought and sold. I’m sure there’s a silver lining in here somewhere….

I don’t have a good feeling about this.

Maybe they’ll rename the company to SoftArm

Good idea. Smart idea. That is what I call money.

Sprint….now ARM….this company must have some money to burn.

At Least they will get their money’s worth with ARM.

Thomas, thanks for the news, but a small correction needed:

ARM is well known for designing chips and licensing them to companies like Apple and Samsung

Apple does not license ARM-designed chips, they design their own. Apple licenses so-called ISA that allows them to come up with ARM v8-compatible SoCs.

Samsung does license ARM’s chips, but they also finally made their own-designed core this year; they use both simultaneously.

First major sign of what the Brexit brought the UK.

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