Japanese telecom corporation Softbank has closed one of the biggest acquisitions in the tech industry with its $32 billion buyout of U.K.-based ARM Holdings (ARM) this week. The U.K. semiconductor giant is known for its processors and graphics technology used by smartphones such as Apple and Samsung. Softbank’s move is part of its plan to bolster its presence in the Internet of Things (IoT) industry.
Softbank will buy ARM’s shares at £17 (about $22.50) per share or at a 43 percent premium on the shares’ closing price at June 15. ARM stocks rose over 46 percent with the news of the acquisition.
Masayoshi Son, Softbank’s chairman and CEO, said that he was very happy with the acquisition. He said that ARM was one of the companies he has always admired for the last 10 years.
Despite the acquisition, Softbank said that it plans to preserve the ARM’s organizational structure and maintain its headquarters at Cambridge. The Japanese company is also planning to double their employee force in the U.K. in the next five years.
