Back in July, Japan’s Softbank announced that it was buying ARM in a deal worth £24 billion. The company agreed to pay £17 a share for the British chip maker, marking one of the most significant acquisitions in the tech industry in recent years.
Now, the deal between the two companies has received the final regulatory approval and has been completed.
“Pursuant to the terms of the Acquisition, SBG purchased all of ARM’s issued and to be issued shares (excluding any ARM shares already owned by SBG or an SBG subsidiary) for cash, for a total acquisition price amounting to approximately GBP 24.0 billion (approximately USD 31.0 billion or JPY 3.3 trillion),” the company noted in its announcement. “Subsequent to the completion of the Acquisition, ARM will be delisted from the London Stock Exchange as of September 6, 2016 (GMT) and will cease to be a listed company.”
Strategic Importance of the Acquisition
ARM is a strategic acquisition for Softbank, given the pervasive nature of ARM’s technology. ARM’s chip designs are integral to a wide range of devices, from smartphones like the Apple iPhone to tablets, wearables, and even IoT (Internet of Things) devices. The acquisition allows Softbank to strengthen its position in the semiconductor industry, which is crucial for the future of connected devices and smart technologies.
Softbank’s CEO, Masayoshi Son, has been vocal about his vision for the future, which includes a world where billions of devices are interconnected. By acquiring ARM, Softbank gains access to a company that is at the forefront of this technological revolution. ARM’s low-power, high-efficiency chip designs are essential for the development of next-generation technologies, including artificial intelligence and machine learning.
Impact on the Tech Industry
The acquisition of ARM by Softbank has significant implications for the tech industry. ARM’s business model, which involves licensing its chip designs to other companies, means that its technology is used by a wide array of manufacturers. This includes major players like Apple, Samsung, and Qualcomm. The acquisition could potentially lead to increased investment in ARM’s research and development, driving innovation in the semiconductor industry.
Moreover, the deal highlights the growing trend of consolidation in the tech industry. As companies seek to gain a competitive edge, mergers and acquisitions have become a common strategy. By acquiring ARM, Softbank not only expands its portfolio but also positions itself as a key player in the global tech landscape.
The acquisition also raises questions about the future direction of ARM. While Softbank has stated that it intends to maintain ARM’s independence and continue its open licensing model, there is speculation about how the acquisition might influence ARM’s strategic decisions. For instance, there could be increased collaboration between ARM and other companies within Softbank’s ecosystem, leading to new innovations and business opportunities.
ARM’s technology is not limited to consumer electronics. Its chip designs are also used in a variety of other applications, including automotive, healthcare, and industrial automation. This broad applicability makes ARM a valuable asset for Softbank, as it can leverage ARM’s technology across multiple sectors.
In conclusion, Softbank’s £24 billion acquisition of ARM is a landmark deal that underscores the strategic importance of semiconductor technology in the modern world. With ARM’s expertise and Softbank’s resources, the acquisition has the potential to drive significant advancements in technology and shape the future of the tech industry.
Source TechCrunch
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