It is the view of the Board that this is a compelling offer for ARM Shareholders, which secures the delivery of future value today and in cash. The Board of ARM is reassured that ARM will remain a very significant UK business and will continue to play a key role in the development of new technology.“SoftBank has given assurances that it will invest considerably in the business, including doubling the UK headcount over the next five years and maintaining ARM’s unique culture and business model. ARM is an outstanding company with an exceptional track record of growth. The Board believes that by accessing all the resources that SoftBank has to offer, ARM will be able to further accelerate the use of ARM-based technology wherever computing happens,” Chambers added. SoftBank claims to have pledged the same and will at least double the number of ARM employees in the U.K. over the next five years, as part of a plan to grow the company through continued R&D investment and complementary acquisitions. Reportedly, it will also expand its IP-licensing model to new markets, focus on long-term value per device, and invest on ARM’s presence in the UK. Masayoshi Son, CEO, SoftBank, plans to retain ARM’s management team and will keep the company’s headquarters based in Cambridge in the UK. In a release, he said:
We have long admired ARM as a world renowned and highly respected technology company that is by some distance the market leader in its field. ARM will be an excellent strategic fit within the SoftBank group as we invest to capture the very significant opportunities provided by the Internet of Things.“As an integral part of the transaction, we intend to at least double the number of employees employed by ARM in the UK over the next five years.” He added. He also stated that Brexit, in no way influenced the acquisition and the board at SoftBank was long interest in buying out ARM. According to the company, this is its largest takeover till date. Earlier it had acquired Sprint for $21.6 billion. It also has a stake in Chinese e-commerce giant Alibaba and humanoid robot ‘Pepper‘. It is interesting to note that SoftBank is acquiring ARM without any footing in the semi-conductor space. Not very long ago, Son had revealed his plan of holding onto his position as SoftBank CEO and work “on some crazy ideas”. Precisely why former Google veteran, Nikesh Arora, his successor-in-hold, stepped down. Considering it as an opportune moment, Philip Hammond, U.K Chancellor also commented on the deal and expressed his consent of Britain, still being open to foreign business.
Although Hermann Hauser, Founder, ARM has a different tale to tell. He tweeted:
Decision by SoftBank to invest in @ARMHoldings shows UK has lost none of its allure to global investors – Britain is open for business— Philip Hammond (@PhilipHammondUK) July 18, 2016
In an interview to BBC, Hauser, claimed that his technology firm had sold 15 billion microchips in 2015, which was more than US rival Intel had sold in its history. He also continued to say that the result of the SoftBank deal meant the “determination of what comes next for technology will not be decided in Britain any more, but in Japan.”
ARM is the proudest achievement of my life. The proposed sale to SoftBank is a sad day for me and for technology in Britain.— Hermann Hauser (@hermannhauser) July 18, 2016