Mon, 18 Jul 2016 | BUSINESS SALE
The most successful technology company in the UK is to be sold to Japan’s SoftBank for an estimated £24.3 billion, it has been reported.
ARM Holdings, which is based in Cambridge, will see SoftBank value the company at £17 per share — equating to a 43 per cent hike on ARM Holding’s closing share price on Friday 15 July 2016. ARM Holdings shareholders will also receive an interim dividend of 3.78p.
Stuart Chambers, the chairman of ARM Holdings, said of the momentous deal: “This is a compelling offer for ARM Holdings shareholders, which secures the delivery of future value today and in cash. The board of ARM Holdings is reassured that ARM Holdings will remain a very significant UK business and will continue to play a key role in the development of new technology.”
As part of the deal, SoftBank has said that it intends to more than double the number of employees working for ARM Holdings over the next five years. The software investment firm also promised to retain the services of ARM Holdings’ organisation and senior management to ensure a smooth transition.
The deal will be one of the biggest technology acquisitions ever seen in Europe. It will also be the largest investment that SoftBank has made in its history — following a £17 billion acquisition for a controlling stake in wireless mobile operator Sprint in 2013.
ARM Holdings is famed for designing the microchips used in Apple’s iPhone and other smartphone devices, however the company has recently expanded to design chips for the ‘internet of things’.
New Chancellor Philip Hammond said of the deal: “Just three weeks after the referendum decision, it shows that Britain has lost none of its allure to international investors. Britain is open for business — and open to foreign investment.”
The Chancellor went on to say: “SoftBank’s decision confirms that Britain remains one of the most attractive destinations globally for investors to create jobs and wealth. And as ARM Holding’s founders will testify, this is the greatest place in the world to start and grow a technology business.
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The company has traded for 16 years, based in the Northwest and operating nationally providing temporary staff to large corporate clients.
The company is well-established and operates from a third party owned quarry in Lincolnshire. The business quarries, manufactures and supplies a range of aggregate products, gabion stone and provides associated products and services throughout the Un...
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