Tokyo: Japan's based company SoftBank Group Corp has signed a deal with British chip designer ARM Holdings PLC for around $32 billion. This information was revealed by a source familiar with the deal.
ARM Company has a major presence in mobile processing, with its processor and graphics technology. It is mostly used by Samsung, Huawei and Apple in their in-house designed microchips.
This deal is one of the largest in terms of European technology to date and SoftBank's largest ever which is signed at $22 billion.
Over the past few years, the plans was announced by Softbank to raise $14 billion with the sale of assets including shares in Chinese e-commerce giant Alibaba. But, this deal was used as a cash to diminish debt by buying back its own shares.
A deal would also come just weeks after Britain voted to leave the European Union, a decision that has battered sterling and bolstered the yen.
Though it has warned on the staffing impact of Brexit, ARM Holdings' revenues are largely in dollars and it has a diverse portfolio of technologies it licenses. Its shares have actually climbed almost 17 percent since the vote.
According to a Financial Times report earlier on Monday, SoftBank will pay 17 pounds in cash for each ARM share, a premium of more than 40 per cent to Friday's close at 11.89 pounds.
SoftBank shares were not traded on Monday, a market holiday in Tokyo. ($1 = 0.7539 pounds).