Softbank May Acquire ARM Holdings For $32 Bn

Softbank_BuildingSoftbank Group, one of world’s largest technology companies,  is planning to acquire Britain’s ARM Holdings, one of the world’s largest chip makers, for $32 billion. Though there has been no official announcement in this regard, sources and media reports say it could be an all-cash deal and the official announcement may be made on this later today.

If this announcement is made, then it would be Softbank’s largest ever acquisition, surpassing the Sprint acquisition in 2013 for $22 billion. It will also be the first Britain company to be acquired in less than a month of the country’s decision to exit the European Union or after Brexit, reports M2MCafe.

The Cambridge headquartered ARM Holdings, makes chips and software for smartphones and is one of the biggest in the world with brands like Apple, Samsung, Huawei and HTC being its loyal customers besides many more. However, smartphones is not why Softbank eyes ARM. In Masayoshi Son’s words, Softbank’s Founder, the next paradigm shift in technology will come from technologies like the internet of things and Artificial intelligence – two areas where ARM has recently shifted its focus to.

This ARM acquisition, the group’s biggest so far, comes in less than a month of Nikesh Arora’s exit, who so far was the head for Softbank’s investment strategy and its CEO.

In the recent months, Softbank has been noticed raising funds, which industry observers are linking to be used to pay up this deal. The Japanese firm recently sold $10 billion worth shares of e-commerce giant Alibaba and its entire stake in Finnish gaming firm Supercell.

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