ARM buys IoT's camera crew, Eyes of Things biz Apical
Pays £242m to branch out as smartphone sector dwindles
Chip-designer ARM has snapped up London-based imaging and embedded computer biz Apical for £242m, in a bid to further branch out from the slowing smartphone market.
Apical's imaging products are used in more than 1.5 billion smartphones and approximately 300 million other consumer/industrial devices including IP cameras, digital still cameras and tablets.
ARM said the acquisition was part of its long-term growth strategy to enable new imaging products for "next generation vehicles, security systems, robotics, smart building, industrial and retail application" - all of which will require image processing.
Simon Segars, CEO, ARM said: "The ARM partnership is solving the technical challenges of next generation products such as driverless cars and sophisticated security systems.
"These solutions rely on the creation of dedicated image computing solutions and Apical's technologies will play a crucial role in their delivery."
ARM hoovered up the business primarily for its assets. According to Apical’s Companies House filing, it turned over £16.6m, with pre-tax profits of £8.7m.
Apical employs around 100 people, mainly at a research and development centre in Loughborough, UK.
ARM's last acquisition was Israel-based Sansa Security which it reportedly bought for $75m-$85m.
ARM maintained maintained its strong revenue growth in the first quarter of this year, posting a sales increase of 14 per cent in revenue to £276m for its first quarter. Pre-tax profits rose 14 per cent to £137.5m. ®