LONDON—ARM Holdings plc has agreed to be bought by Softbank of Japan for £24.3 billion (about $32.25 billion) in an all-cash deal.
The board of directors of processor intellectual property licensor ARM has recommended acceptance of a Softbank offer of £17 per share, which represents a 43 percent premium over the share price at the close of trading on Friday July 15.
As part of the deal Softbank has pledged not to change ARM's successful partnership business model, culture and brand. It has also said it will keep ARM's headquarters in Cambridge, England, and to increase employment in the UK from approximately 1,700 to approximately 3,000 over the next five years.
SoftBank plans to finance the deal through a combination of debt and cash on hand.
ARM CEO Simon Segars said in a video interview posted on the ARM website hat the deal was good for ARM because the two companies have a common view of the future of technology and the need for rapid investment in R&D and engineering for developments such as the Internet of Things and autonomous automobiles. SoftBank would be able to provide a level of investment that ARM could not provide on its own.
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