ARM pursuing major acquisition
ARM has set its sights on an acquisition. Whether this is in the intellectual property (IP), IC or systems space is not known. However it will not cost more than £100m.
Asked about a provision of £100m in the Q3 accounts, ARM CEO Warren East told Electronics Weekly that the amount was in respect of a possible acquisition.
“It’s an accounting artefact,” East told EW, “we have lodged this amount of money – we have made this amount available for the investment. As of the 30th (Sept) it hadn’t closed.”
If the deal is not done the money is returned to ARM.
On the ARM Q3 results call, ARM’s CFO, Tim Score, said: ”This (the £100m) represents the entire investment being contemplated.”
The £100m price-tag would appear to rule out Ceva being the acquisition targe which is one of the rumours, because Ceva’s market value is about $340m.
Ceva, like ARM, is an IP company. It specialises in synthesisable, programmable DSP cores for mobile, home and networking markets. An acquisition would allow ARM to generate more revenue per mobile device and help its aspirations in other markets.
ARM has a cash hoard of over $700m, so it is in a good place to do acquisitions.