Arm has announced its plan to spin off its two IoT businesses, IoT Platform and Treasure Data, to SoftBank Group.
The move will allow the UK-based company to shift the entirety of its focus to its semiconductor IP business that has made it a household name in the tech industry.
While the new entities created from the plan will be owned and operated by SoftBank, Arm expects to continue collaborating with the new IoT Services Group (ISG) businesses.
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IoT Services Group
Arm CEO Simon Segars explained in a press release that SoftBank's experience in managing early-stage businesses will be beneficial to its ISG businesses, saying:
“Arm believes there are great opportunities in the symbiotic growth of data and compute. 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 to innovate in our core IP roadmap and provide our partners with greater support to capture the expanding opportunities for compute solutions across a range of markets.”
The transfer of Arm's ISG businesses is still subject to further board review and customary closing conditions but the company believes the spin off will be finalized by the end of September this year.
