The United Kingdom's (UK) largest technology company, ARM Holdings, confirmed on Monday morning that it had accepted an offer from the Japanese company, SoftBank.
ARM designs microchips used in many devices, including smart phones made by Apple and Samsung. It is expected to invest in the so-called Internet of Things, where many everyday items are expected to be connected to the internet into the future.
The deal, worth £24 billion (US$32 billion), is now expected to be presented to shareholders. The amount offered per share is 43% above the value at the close of trading on Friday. Shares rose by 45% on Monday morning in response to the announcement. Three-quarters of shareholders will need to approve the deal for it to go ahead.
ARM has said its headquarters will remain in Cambridge. Simon Segars, ARM's Chief Executive, also said a pledge by SoftBank to double ARM's workforce on the UK would be legally binding.
Philip Hammond, the UK Chancellor, said it would be the biggest investment into the UK from Asia, as well as showing that “Britain remains one of the most attractive destinations globally for investors to create jobs and wealth”. Theresa May, the UK Prime Minister, had recently questioned the benefit to the nation of such takeovers, but has said this one shows the UK can remain successful outside the European Union.

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ARM to be bought by SoftBank