Japan's Softbank buys Britain's ARM semiconductor maker

TOKYO, July 18 (UPI) -- Tokyo-based Softbank Mobile Co. announced it is buying the British tech firm ARM Holdings in a $32 billion cash deal.

The semiconductor firm ARM is a leader in mobile computing and design technology. Its products can be found in Apple iPhones, drones and appliances.

The deal is the largest investment in the United Kingdom by an Asian buyer, and the first major business deal since Britain voted in a referendum to leave the European Union on June 23. The British pound fell 27 percent against the Japanese yen since the start of the year, presenting an opportunity for Softbank to pay less for what it regards as a prized asset.

Softbank CEO Masayoshi Son called the deal his "big bet on the future," noting ARM is well-positioned in an industry that is bringing more semiconductors to household devices, referred to as "the internet of things."

"This is the company I've wanted to [build] for 10 years. The 'Internet of things' is growing big time,' he said. He added that officials in Britain with whom he spoke are receptive to the deal.

Since only nine percent of ARM's revenue comes from Europe, it is protected from fallout from the British decision to leave the EU. The majority of the revenue of the Cambridge-based company comes from Asia.

ARM shares jumped 43 percent in early trading Monday to $22.50 per share, matching the offer by Softbank.