The Japanese multinational telecommunications company, Softbank has announced to acquire the most popular chip design company ARM Holdings for $31 billion.
The British company ARM is known for its chip designs, used by all major technology companies including Apple, Samsung, LG and other big names. In fact the phone you’re using to read this post might be using the ARM designed chip.
ARM licenses its chip designs to more than 300 companies around the world. Just last year almost 15 millions chips were shipped based on ARM technology.
Softbank is known to acquire or get majority stakes in profitable companies. Sprint Nextel, SuperCell, Didi Chuxing and Snapdeal are just a few to name.
Industry experts suggest that the real motive behind acquiring ARM is to help Softbank expand in the IOT (Internet of Things) category.
It is expected that both ARM shareholders and British government will accept the deal as soon as possible, since the company is getting 43% premium on its market value.
