Arm Limited’s selling 51% stake in its Chinese subsidiary for US$1.52 billion

Slaughter and May advised Arm Limited on the sale of a 51% stake in its Chinese subsidiary, Arm Technology (China) Co., Ltd., to entities representing certain financial investors and certain of Arm’s ecosystem partners in order to form a joint venture for Arm’s existing semiconductor technology IP business in China. The transaction values Arm China at US$1.52 billion.

The joint venture, which will license Arm semiconductor technology to Chinese companies and locally develop Arm technology in China, is expected to expand Arm’s opportunities in the Chinese market. Arm will continue to receive a significant proportion of all licence, royalty, software and services revenues arising from Arm China’s licensing of Arm semiconductor products.

Zhong Lun advised Arm on the Chinese law aspects of the transaction.

Slaughter and May advised Arm Limited on the sale with a Corporate team led by Chris McGaffin (partner) and Christian Boney (partner, in picture), alongside Harry Hecht (associate), Emma Primrose (associate) and Matthew Carey (associate); on IP/IT matters acted Rob Sumroy (partner), Laura Houston (associate) and Ian Ranson (associate); and on Tax law advised Dominic Robertson (partner) and Charles Osborne (associate).

 

Involved fees earner: Chris McGaffin – Slaughter and May; Christian Boney – Slaughter and May; Harry Hecht – Slaughter and May; Emma Primrose – Slaughter and May; Matthew Carey – Slaughter and May; Rob Sumroy – Slaughter and May; Laura Houston – Slaughter and May; Ian Ranson – Slaughter and May; Dominic Robertson – Slaughter and May; Charles Osborne – Slaughter and May;

Law Firms: Slaughter and May;

Clients: ARM Ltd.;