Arm’s decision to spin-off its “internet of things” (IoT) services business and focus on its core chip design business are signals a float is “now more likely”, analysts say.
The SoftBank-owned chip designer announced it would hive off its IoT services division late on Tuesday. The Cambridge firm, which was bought by SoftBank in 2016 for £24bn, said it would transfer two businesses to the Japanese conglomerate, which would then oversee them directly.
Arm has built up the business under four years of ownership by the Japanese firm.
SoftBank has the experience to make the most of the potential of the IoT sector, said Arm’s chief executive Simon Segars.
Mr Segars said: “SoftBank’s experience in managing fast-growing, early-stage businesses would enable ISG to maximize its value in capturing the data opportunity.
“Arm would be in a stronger position