Softbank to acquire ARM for GBP 24.3 billion 

Softbank has agreed to buy mobile chip designer ARM Holdings for GBP 24.3 billion (JPY 3.3 trillion). The cash offer of 1,700 pence per share is a premium of 69 percent on ARM's average share price in the past three months and ARM shareholders will also be entitled to a dividend of 3.78 pence per share.

The takeover is expected to significantly strengthen Softbank's position in the Internet of Things, adding to its telecom operations in the US and Japan and a range of investments in new technologies. SoftBank said it intends to maintain ARM's organisation based in the UK, including existing senior management, the brand and the partnership-based business model. It will continue ARM's strategy of moving beyond the smartphone market to target wireless technology for enterprise and embedded applications. The Japanese company also pledged to at least double the employee headcount in the UK over the next five years and also increase staff numbers at ARM outside the UK.

ARM's board has unanimously recommended the deal to shareholders, saying it "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 company is also expected to be able to pursue its technology and growth strategy easier as a non-listed entity.
The takeover is expected to close in Q3. Softbank has arranged a two-year bridge loan of up to JPY 1 trillion to finance the takeover.

Source: Total Telecom