Arm backtracks on transfer of IoT and AI businesses to Softbank
Arm has said its burgeoning IoT platform and data analytics businesses will not be handed over to parent Softbank after all, after the trade was announced last month as part of the UK-based chip design company’s plans to put focus on its core semiconductor business.
Instead, the two business will be spun-off as distinct companies, under the same ownership. In a statement, quoted widely in business pages, the Cambridge outfit said the two units would do as well under the new arrangement, without the disruption of also changing hands.
At the same time, Arm is up for sale, according to reports, with US graphics maker Nvidia in talks to acquire the firm in what would be the “biggest ever chip deal”.
A statement from Arm on Monday (August 24) said: “After further diligence, we have determined that both… can realize the same benefits as independent operating businesses, each with their own P&L, under the Arm Limited umbrella with less operational disruption. We will share more details once the proposed transfer of the businesses has been completed.”
Japanese firm Softbank had planned to spin-off the units – including its Pelion IoT device and data management platform and Treasure Data analytics engine – to other group businesses, to be “owned and operated by Softbank and its affiliates”.
Arm wants to deepen its focus on its core semiconductor intellectual property (IP) business. It said in July it will continue to collaborate with its old IoT Services Group (ISG) businesses.
SoftBank bought Arm in 2016 for about $32 billion. Arm acquired data management company Treasure Data two years ago, following quickly on the heels of its purchase of Stream Technologies, as “the final piece of our IoT enablement puzzle”.