The $31.6bn bid by SoftBank Group for ARM Holdings is in line to be the second largest M&A deal on record globally in the semiconductor industry. The deal is the largest UK technology targeted M&A deal on record, and the second largest Japanese outbound M&A deal on record behind the $36.1bn Sprint Nextel/SoftBank deal in 2012.
Transaction Details
Target: ARM Holdings | United Kingdom | semiconductor industry | Advisors – Goldman Sachs, Lazard, UBS
Acquiror: SoftBank Group | Japan | Telecoms industry | Advisors – Mizuho, Raine Group, Robey Warshaw
Announced: 18 July, 2016
Deal Value ($m): 31,645
Key Points
- Softbank/ARM is the third largest M&A deal announced so far this year. Global M&A totals $1.89tr in 2016, down 20% from the same point last year ($2.36tr). Cross‐border M&A ($665.8bn) accounts for 35% of global M&A, the highest YTD share since 2007 (39%)
- Technology is the top targeted sector for global M&A in 2016, with $342.7bn, the highest YTD total since 2000 ($390.6bn). 4 of the 5 largest technology M&A deals on record have been announced in the last 15 months, including Broadcom/Avago Technologies ($36.1bn) in May 2015, the largest semiconductor targeted M&A deal on record, ahead of SoftBank/ARM
- UK targeted M&A has dropped 40% year‐on‐year in 2016 YTD, to $109.2bn from $180.8bn in the same period last year. 81% of UK M&A volume this year is from non‐UK acquirors ($88.7bn), the highest YTD share on record
- Japan outbound M&A in 2016 ($51.7bn) stands at the second highest YTD total on record ($55.0bn in 2015). Total Japanese acquisitions have reached $94.9bn, the highest YTD level in 4 years ($102.5bn in 2012)