Those who have good knowledge of smartphones already know about ARM chipsets. The UK chip designer ARM Holdings PLC is now being bought by SoftBank Group Corp in cash. The deal has been finalized at 24.3 billion pound, which roughly translates to $32.2 billion.
ARM is the largest tech company listed in London in terms of market value, having a major foothold in the mobile processing business. The company supplies its graphics and processor technology to Huawei, Apple, and Samsung for their in-house chips. ARM’s components are very common in smartphones along with other devices.
Apart from being in the smartphone business, ARM is also involved in the transition to IoT (Internet of Things), which is also a major focus point for Masayoshi Son, found of Softbank. Talking about this new deal, it is the largest ever transaction made by Softbank, making it a milestone in the history of the Japanese group.
Softbanks’ portfolio ranges from a stake in the popular e-commerce site Alibaba to US carrier Sprint. Softbank will be paying pay 17 pounds per share in ARM. Softbank founder said that ARM is one of the most important acquisitions ever made. The founder expects ARM to become an important pillar in Softbank’s growth.
The new ARM deal is one of the biggest overseas deals made by Japan, even outranking Spirit. While the domestic economy is stagnating, the Japanese businesses are seeking growth in foreign markets. Over the last few months, Softbank has raised around $19 billion in cash by disposing assets. Following Brexit, Softbank decided to take advantage of the strengthening Yen and falling Sterling by buying ARM.
After acquiring ARM, Softbank wants to focus on IoT and artificial intelligence while the smartphone market is slowing down. We wish good luck to Softbank and hope that they take good care of ARM that powers most of our smartphones.