United Kingdom-based ARM — the company that designs the processors at the heart of most every smartphone chipset much less many computers’ chipsets — has come to an agreement with Japanese telco SoftBank to be bought out for £23.4 billion or $31 billion.
According to insiders tipping off the Financial Times, the deal is expected to close this morning and will value ARM’s shares at £17, 43 percent better than at end of business Friday.
SoftBank had recently sold off its majority stake in mobile gaming publisher Supercell to China’s Tencent Holdings. This acquisition is the first major one since CEO Masayoshi Son retook the reins at the company following the departure of his successor, former Googler Nikesh Arora. The conglomerate acquired majority control of Sprint back in 2012.
The Times considers ARM a Brexit-proof investment as its stock performance on the FTSE 100 has held steady for the past year, it deals mostly in design of chips (intellectual property) rather than manufacturing and that it makes money in US Dollars, a safer currency.
The value of the deal falls about $6 billion short of last year’s acquisition of Broadcom by Avago.