British tech firm Arm to offload IoT units to Softbank
Chipmaker Arm is to spin off its internet of things (IoT) software and services divisions to parent Softbank, as it focuses on its core business.
Japanese giant Softbank purchased the Cambridge tech firm in 2016 for £24.3bn. The deal triggered a review of foreign takeover rules in the UK after ministers became concerned the country was selling off the jewels in its tech crown.
Arm is seeking to focus its efforts exclusively on its successful semiconductor IP business, which has made its technology a prominent part of the mobile sector in recent years.
“Softbank’s experience in managing fast-growing, early-stage businesses would enable [the unit] to maximise its value in capturing the data opportunity,” said Arm chief executive Simon Segar.
“Arm would be in a stronger position to innovate in our core IP roadmap and provide our partners with greater support to capture the expanding opportunities for compute solutions across a range of markets.”
Pending board and regulatory approval, Arm said it expects the transfer to be completed before the end of September this year.
The move follows reports that Arm could soon be floated by Softbank on Wall Street, as the investment firm maps out a future for the chipmaker.
Softbank had previously declared its intention to list Arm by 2023, but had not specified a venue.
The Nasdaq would be a preferable choice for Arm’s debut, given the heavy presence of technology firms on the index, the Telegraph reported.