(Bloomberg View) -- The U.K. tech sector just got an oversized star -- ARM Holdings Plc -- a chip designer that relatively few people had heard of until its sale to the Japanese tech giant SoftBank on Monday. Masayoshi Son, SoftBank's chairman, is plunging his company deeper into debt to pay an outrageous sum for ARM, which doesn't manufacture anything, sell a service or even write software. It's probably a brilliant bet.
SoftBank is paying 24.3 billion pounds ($32.2 billion) for ARM, whose revenue reached 968.3 million pounds last year. According to data compiled by Bloomberg, it's by far the biggest company in the U.K. with a price to sales ratio of more than 15 -- the other 69 companies matching that description range from medium-sized to tiny, many of them science-based start-ups without any revenue. After the deal announcement, ARM accounts for one-third of the total capitalization of all U.K.-traded tech companies:
Register or login for access to this item and much more
All Information Management content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access