“Japan’s SoftBank is bidding to acquire British chip designer ARM Holdings for $32 billion in cash. If it succeeds, it will be the UK’s biggest technology acquisition ever,” Joon Ian Wong writes for Quartz. “SoftBank is shelling out a hefty 43% premium for the chip designer, based on its share price before the bid was made. What does it get in return?”

“For starters, SoftBank just bought a critical part of the world’s computing infrastructure,” Wong writes. “ARM’s chip designs are in 95% of the world’s smartphones, including Apple’s iPhones. ARM designs have provided the foundation for Apple’s A-series chips, which power its phones and tablets.”

Wong writes, “The ARM deal would give Softbank a central position in the world’s mobile computing ecosystem and a front-row seat to the Internet of Things, which the world’s chip-makers hope presents the next great proliferation of processors.”

Read more in the full article here.

MacDailyNews Take: Softbank is making a smart bet.

Softbank to acquire Apple chip designing partner ARM for $32 billion – July 18, 2016