Arm Holdings Plc., the UK-based software design and semiconductor company, has reportedly announced its plans to spin off two internet of things( IoT) businesses and transfer them to its parent organization SoftBank Group Corp.
According to sources, the company’s spin-off move is in line with its goal to focus exclusively on the semiconductor IP business. The transfer of two IoT businesses is subject to the company’s board as well as regulatory authorities review. The spin-off is expected to be completed by September.
Although the move would remove the IoT platform from Arm’s brand, the company will still collaborate with IoT Services Group (ISG) businesses. However, the spinoff plan does not involve the company’s IP for IoT chips’ business.
Speaking on the move, Simon Segars, CEO of ARM said that the company believes that there are exceptional opportunities in the co-operative growth of data and compute. SoftBank’s expertise in managing early-stage, fast-growing businesses would enable ISG to increase its value in seizing the data opportunity, Mr. Segars stated.
Mr. Segars claimed that the company would be in a stronger position to innovate its main IP roadmap and provide its partners with greater support to seize the growing opportunities for computing solutions across several markets.
Arm’s IoT business has been growing significantly from the past few years with its technologies shipping on billions of devices worldwide. SoftBank bought Arm back in 2016 for USD 31 billion, saying at the time that it was excited about the growth opportunities within the IoT market. Later, Arm acquired Treasure Data Inc. for USD 600 million in 2018. The acquisition was aimed at strengthening the company’s IoT portfolio.
For the record, Arm currently delivers a comprehensive Internet of Things( IoT) solutions for its partners and customers. It is also delivering artificial intelligence services that enable organizations to scale their product portfolio.