ARM’s shares were trading at 1 pound 10 years ago and are worth 17 pounds under SoftBank’s offer. The Japanese company also plans to double ARM’s workforce in United Kingdom and increase its headcount outside the country over the next five years. Cambridge-based ARM employs a little more than 4,000 people worldwide. Over 15 million devices were shipped previous year using ARM tech and they are bullish about powering the internet of things.
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Meanwhile, Phil Sharpe, director at Grant Thornton’s Cambridge offices, said it was “disappointing” to see ARM acquired by an overseas buyer but said it was a reflection of the current state of the market.
Nonetheless, some within the tech industry in the United Kingdom have mourned the loss of independence for the soon-to-be Japanese company. ARM founder Hermann Hauser called the deal “sad”, and was caused by Brexit.
What’s more, SoftBank actually plans on expanding the ARM workforce in the United Kingdom, saying they’ll at least double the employee count there over the next five years.
Shares in the United Kingdom technology firm surged by 45% at the open of the London Stock Exchange to 1,742.85p per share, adding £7.56bn to ARM’s market value. SoftBank said its board approved the deal, but ARM shareholders and the English courts still need to approve it. ARM has recommended the deal be approved by its shareholders.
The deal has to represent a transformation in Softbank, and it made the first move in that direction past year selling its stake in Supercell, a Finnish designer of social games like Clash of Clans, to China’s Tencent Holdings Ltd (OTCMKTS:TCEHY) It is also possible that stakes in Softbank Mobile and Sprint could come to market as Softbank focuses capital on ARMH stock.
The company licenses and sells its technology and products to electronics companies.
Its chief executive Masayoshi Son, pictured with ARM chairman Stuart Chambers, said: “ARM will be an excellent strategic fi t as we invest to capture the very significant opportunities provided by the “internet of things”.
Philip Hammond, Britain’s new Treasury chief, said the deal shows that Britain has “lost none of its allure to worldwide investors” in the wake of the June 23 vote to leave the European Union. “I say this is the time to invest”.
“This is good news for British workers, good news for the British economy”.
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A spokeswoman for the prime minister said Mrs May believed the deal was in the country’s national interest – a gauge that she will use to assess any future foreign takeovers.
