Softbank acquired chip design manufacturer ARM for $31 billion
- Author:gemini
- Source:www.ramjoinwin.com
- Release Date:2016-07-18
According to England "financial times" reported that, according to people familiar with the Japan's softbank has agreed to pay 23.4 billion pounds ($31 billion) to buy the UK ARM chip design company.
according to people familiar with the deal is expected to be announced on Monday morning, and will thus become the take off after the referendum in the first large-scale mergers and acquisitions.
Specially designed ARM chip and chip components, the company is now worth about $22 billion.
ARM was founded 25 years ago, currently has 4000 employees.The merger is expected to become one of the biggest mergers and acquisitions in Europe technology company.Softbank's bid for 17 pounds per share in cash, the ARM last week's closing price premium of 43%.
A few weeks after, the UK has just finished off the referendum, a move that could reduce the enterprise's appeal.But as a result of the ARM is a global chip design companies, leading in the field of key chips, revenue by dollars, so the impact on smaller.Sterling fell almost 30% against the yen exchange rate over the past year, to enhance the ARM to softbank's appeal.
Masayoshi son just fired a few weeks ago softbank chief trade officer, a former Google executive Nick, Mr Arora (Nikesh Arora).
In under the leadership of masayoshi son, softbank has developed into a market capitalisation of $68 billion multinational telecommunications and media giant, its assets include America's fourth largest telecoms operator Sprint and yahoo Japan, etc.
Before this, Mr. Son has a $20 million investment in 2000 alibaba, the investment has increased to $65 billion today.He also spent some $15 billion loss in 2006 of vodafone business in Japan, and continue making the softbank, Japan's third largest telecoms operator.
Softbank, in the past 10 years, cost about $82 billion for more than 140 acquisitions.Almost all transactions are in the past four years by Mr Arora fencing, including investment in the Uber drops travel and its rivals.
Had been think ARM might become targets of Intel, which failed to seize the smartphone wave.Intel's x86 architecture is developed on PC platform, but in the smart phone has the disadvantages of power consumption is too large.
ram ddr3 1600 8gAs the ARM is the only British famous science and technology company, because the outside world agree that the us technology company will use a lot of cash for its overseas acquisitions.
Technology of ARM, as in Britain in the 1980 s computer maker Acorn internal development is complete, then split as independent companies, and won a big apple support.The company's technology to apply in the first generation of mobile devices, including apple Newton for handheld devices.
ARM's business model is to other hardware manufacturers authorized technology, thus become the leading enterprise in the field of mobile chips.The company will use its technology to each equipment of royalties, but this kind of equipment has a large base.The delivery of the ARM chip 15 million last year, an increase of 3 million than a year ago.About half of them are from mobile devices, but the ARM iot chip faster growth and network equipment.
Because of the ARM is a chip design company rather than a manufacturer, so through intellectual property rights to obtain high profit margins.However, the company revenue last year only 1 billion pounds, low proportion in the global chip industry.The purchase price equates to ARM last year net profit of 70 times, the equivalent of EBITDA (earnings before interest, tax, depreciation and amortisation earnings) of more than 50 times.
Due to technology to apple and samsung's leading hardware manufacturers, therefore the outside world don't think the company will become the target of hardware manufacturers, because such a deal may alienate the relationship with other customers.