Softbank to acquire ARM holdings

As per the latest reports, SoftBank, Japanese telecommunications company has agreed to acquire British chip designer firm ARM Holdings for $31.4 billion (£23.4 billion).
This is the biggest purchase of an European Technology company ever. SoftBank is paying around £17 for each share to the British company. The impact of the Brexit vote and the fall of the Pound leads to witness this biggest technology exit.

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The British vote to leave the EU (European Union) is likely made the ARM a target to the foreign companies in looking for the investments, but the chip designer’s global importance protected it from the worst even in the quick drop of the pound’s value.

When compared with the large chip designer companies like Intel, Samsung and Qualcomm, ARM is comparatively small regarding the revenue.
Despite this, the company has punched about its weight on the global market by licensing their technology to huge firms like Apple and the Samsung collecting royalties on each chip made.

More than 15 Billion ARM-designed chips were shipped last year, and there is an increase of 3 billion on the year before, in these half of them were going into the mobile devices.
From the earlier years, ARM is the leader in chips for the mobile devices and on the while, other semiconductor companies are focusing on the desktops.
ARM’s Competitors felt desperate to switch to the mobile, mainly for Intel, placing the ARM in the upper position to dominate the market for the chips which are being used in cell phones and the tablets.

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The Tokyo-based SoftBank invests in technology, media and other telecommunications business and the acquisition of ARM could provide an additional boost to the Softbank’s Mobile strategy.

The SoftBank holds about 83% of the American Wireless operator Sprint, which means that this acquisition of the ARM, SoftBank would own the carrier and the chip designer.
On July 18, 2016, Japan’s SoftBank Group Corp which is led by the billionaire Masayoshi Son who said that it would buy the British chip designer ARM Holdings PLC for $32 billion (24.3 billion pounds).

Mr Son stated that he was a “strong believer in the U.K.,” and he added that he had spoken about this huge deal with Mr Hammond,Chancellor of the Exchequer along with Britain’s new prime minister Theresa May.