ARM and Japan’s Softbank have announced a new deal which will see Softbank pay £24.3 billion to take over ARM.
Softbank will pay £17 a share in cash to take over ARM, this is a 43 percent premium on the company’s closing price last week.
ARM closed at £11.89 last week and it is trading at over £17 today since the markets opened. The company was founded 25 years ago and it employs 4,000 people.
With the recent Brexit vote the pound has fallen some 30 percent against other currencies, this has made the acquisition of ARM more attractive due to the change in the exchange rate.
ARM is a major player in the smartphone market, the company licenses its chips to smartphone makers like Apple and Samsung.