On Monday, SoftBank confirmed that it would purchase ARM Holdings for £24.3bn, representing the largest ever acquisition of a European technology business. Founded in 1990 and based in Cambridge, ARM designs microchips used in many popular consumer technologies, including smartphones from Apple and Samsung. The deal value reflects a 43 per cent premium on ARM’s closing market value on Friday, which sat at £16.8bn. After news of the deal went live, ARM shares rocketed by 45 per cent to 1,742.85p per share, adding £7.56bn to the company’s market capitalisation. In a statement confirming the deal, ARM said that it will keep its headquarters in Cambridge and will aim to double its 3,000-strong staff headcount over the next five years.

Firms advise

ARM Holdings instructed a team from longstanding advisor Slaughter & May led by M&A heavyweight and new senior partner Steve Cooke to advise on the deal. Brussels-based competition partner Jordan Ellison and London-based corporate lawyer Chris McGaffin supported Mr Cooke. Meanwhile, buyer SoftBank turned to long-time legal counsel Morrison & Foerster with advice led by Tokyo managing partner Ken Siegel and London-based head of corporate and global chair of M&A Graeme Sloan. An M&A team from Freshfields Bruckhaus Deringer including global co-head of M&A Ben Spiers and corporate partner Stephen Hewes were also drafted in to add muscle in London.

Sources: Legal Business; Legal Week; BBC