According to the xinhua news agency
Japan's softbank company takeover agreement with Britain's arm, acquisition of more than $32 billion. This will be the softbank's biggest single acquisition.
Arm not only dominant in the smartphone chip design field, and enter the server domain, Intel challenge the United States. Started from a small laboratory and arm development as the industry leader. 95% of the world's smartphone chip design that USES it.
Softbank's founder and chief executive said masayoshi son 18, softbank to arm "admire already a long time. Britain's new chancellor of the exchequer, Philip Hammond, hailed the deal, "it's going to be Asia's history of Britain's biggest investment".
According to mutual agreement, softbank will pay arm 17 pounds ($22.5) per share, for all cash purchase. This price is 43% premium over arm 15.
Softbank, transaction is completed, will get the profitable chip giant holding status, thereby gaining smartphone devices such as a share of the profits. Both apple and samsung electronics companies in the United States and qualcomm, their products use the arm chip design are required to pay royalties.
Softbank acquired arm, when the pound against the Japanese yen exchange rate fell sharply. Bloomberg news reported in the United States, the British decided to leave the European Union, softbank has begun to consider acquiring arm.
If you want to complete the bid, softbank's huge debt and will add a pen. According to bloomberg data, by the end of march this year, softbank, a total of nearly $106 billion in debt, and less than $23 billion for securities.
However, considering the arm dominance can be converted into cash flow continuously, market analysts said the acquisition arm will be a good business. Arm of the business model based on risk and profit allocation, if the customer to sell more smartphone devices, such as arm will earn more profit.
Big shareholders as alibaba group, softbank's 2013 acquisition of sprint, telecommunications businesses in the United States listed on alibaba, softbank is going to take a cash and stronger sprint. Previously, softbank, or even sell shares worth at least $7.9 billion in alibaba to ease liquidity.
