Japan's SoftBank to buy UK chip designer ARM for S$43b

 Japan's SoftBank Group Corp has agreed to buy British chip designer ARM Holdings for £24.3 billion (S$43.3 billion).
Japan's SoftBank Group Corp has agreed to buy British chip designer ARM Holdings for £24.3 billion (S$43.3 billion).PHOTO: REUTERS

LONDON (REUTERS) - Japan's SoftBank Group Corp has agreed to buy British chip designer ARM Holdings for £24.3 billion (S$43.3 billion), in a deal that will retain the company's management and grow its workforce.

ARM, Britain's preeminent technology company, said the two boards had reached agreement on the terms of the deal, with SoftBank paying 1,700 pence in cash for each ARM share, representing a premium of around 43 per cent.

Shareholders will also receive a dividend.

SoftBank said it intended to preserve the ARM organisation, including its headquarters in Cambridge in central England, its existing senior management team, brand and partnership-based business model.

It also pledged to at least double ARM's employee headcount in the UK and increase its headcount outside of the country over the next five years.