Japan’s Softbank has acquired U.K. semiconductor firm ARM Holdings in a deal worth $ 31 billion, the companies announced on Monday, as the Japanese telecoms giant bolsters its presence in the growing internet of things (IoT) sector.
Softbank will pay £17 per share for ARM, a 43 percent premium on Friday’s closing price, in an all-cash deal.
ARM is a supplier to the likes of Apple and has been focusing heavily on improving its IoT semiconductor portfolio. IoT devices can be anything from an internet-connected washing machine to “smart” buildings. Some of these devices do not require the high-powered chips used in smartphones but often smaller and “low-powered” semiconductors which ARM has developed.
IoT connected devices will number 38.5 billion in 2020, up from 13.4 billion in 2015, a rise of over 285 percent, according to Juniper Research, highlighting the interest in this sector from major technology giants.
Softbank’s acquisition of ARM would represent one of the biggest takeovers of a European technology business. ARM is based in Cambridge, U.K., a city just north of London and employs around 4,000 people.
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