In the wake of UK Brexit vote, ARM Holdings is to be bought by Softbank for $32 billion

The technology industry in the UK was rocked by the historic Brexit vote in the referendum about membership of the EU just a few weeks ago. Concerns were voiced that tech companies would scramble to leave the UK, and with Japan's Softbank Group due to buy UK chip-maker ARM Holdings for $32 billion (£24 billion), this could just be the start of things.

ARM chips are found in mobile devices produced by Apple and Samsung, and more recently it has branched out into the Internet of Things. But while some will be unhappy with the change of ownership, Softbank says that it will not only remain headquartered in Cambridge, UK, but will look to at least double its UK workforce.

News of the acquisition saw ARM share prices leap by 45 percent, seeing the company's value jump by $10 billion (£7.56 billion). The boards of both ARM and Softbank are recommending that the all cash deal go ahead, but regulatory approval will still be required before this can happen.

Stuart Chambers, Chairman of ARM said:

It is the view of the Board that this is a compelling offer for ARM Shareholders, which secures the delivery of future value today and in cash. The Board of ARM is reassured that ARM will remain a very significant UK business and will continue to play a key role in the development of new technology. SoftBank has given assurances that it will invest considerably in the business, including doubling the UK headcount over the next five years and maintaining ARM's unique culture and business model. ARM is an outstanding company with an exceptional track record of growth. The Board believes that by accessing all the resources that SoftBank has to offer, ARM will be able to further accelerate the use of ARM-based technology wherever computing happens.

Softbank CEO Masayoshi Son commented on the acquisition, saying:

We have long admired ARM as a world renowned and highly respected technology company that is by some distance the market-leader in its field. ARM will be an excellent strategic fit within the SoftBank group as we invest to capture the very significant opportunities provided by the "Internet of Things.

This investment also marks our strong commitment to the UK and the competitive advantage provided by the deep pool of science and technology talent in Cambridge. As an integral part of the transaction, we intend to at least double the number of employees employed by ARM in the UK over the next five years.

While ARM may be remaining in the UK, the change of ownership will remain a concern for many. The BBC suggests that "Britain's best hope of building a global technology giant now appears to have gone".