FT: SoftBank To Buy ARM Holdings For $31 Bln

(RTTNews) - Japan's SoftBank Group Corp. (SFTBF.PK) has agreed to acquire UK-based chipmaker ARM Holdings plc (ARMH, ARM.L) for 23.4 billion pounds, or $31 billion, the Financial Times reported Monday, citing two people familiar with the negotiations. The deal is expected to be announced Monday morning.

ARM licenses its technology to other technology companies like Apple and Samsung Electronics. SoftBank expects the acquisition of ARM will make it a leader in the Internet of Things segment.

According to the FT report, SoftBank will pay 17 pounds in cash for each share in ARM. This represents a nearly 43 percent premium to ARM's closing stock price of 11.89 pounds on Friday.

The deal comes just weeks after the UK decided to leave the European Union. ARM is seen as better insulated from the vote for Brexit compared to other UK companies. In addition, the fall in sterling following the Brexit vote has made ARM an attractive target, according to the FT report.

The New York Times had earlier reported that SoftBank was nearing a deal, but did not provide any financial details about the potential transaction.