Chip designer ARM to be acquired by Softbank for $32 billion

SoftBank is buying ARM for $32 billion. You might not know ARM holders by name, but the company's technology is probably powering your smartphone. ARM is a UK based processor designer, and many companies, including Apple, Samsung, and Qualcomm, [UNKNOWN] its designs to make their own processors for smartphones and other devices. Japanese telecom SoftBank is in the process of acquiring ARM for about $32.15 billion in an all cash deal. Some of the terms of the deal were not on a new site available at excellerating tax dot com. SoftBank will pay ARM shareholders a 43% premium on the starts closing price as of July 15th. SoftBank will double ARM's UK head count over the next five years. The site also says ARM as a company will remain relatively unchanged. ARM CEO Simon Segers explained why the company agreed to be purchased by SoftBank. He says the company wasn't looking to sell, but when SoftBank came a knocking, ARM had to consider it The price had to be compelling to shareholders, and the deal would have to provide a future that is more exciting than ARM could achieve on its own. Seegers mentioned how ARM and SoftBank have no overlap, so ARM could continue to license its technologies to various companies as it did before. There would be no conflict from its new parent company. In general, ARM has been very successful in the mobile space due in part to its low power requirements. ARM based processes can be found in video streamers like the Apple TV and Google's Chromecast. ARM's technology also powers Amazon's Echo smart speaker, ARM is one of SoftBank's larger acquisitions. In the past, SoftBank purchased Vodafone Japan And also acquired a 78% stake in US Telecom Sprint. That's it for this new's update, I'm Isaiah Zatar and you can stay on top of the biggest stories at cnet.com/update.