ARM HOLDINGS, the UK’s most successful listed technology firm, yesterday announced it has bought Finnish startup Sensinode Oy for an undisclosed sum.
The chip designer described Sensinode as a “pioneer in software for low cost low power internet connected devices,” a market in which Arm is keen to continue its growth.
The acquisition is the first for new chief executive Simon Segars, who took over from long-serving Arm chief executive Warren East in July.
Sensinode Oy specialises in software for the so-called internet of things (IoT), a catch-all term that encompasses new technologies that introduce connectivity into everyday devices, from smart appliances to wearable electronics.
Before stepping down from Arm, East announced that the company’s biggest opportunity for growth lay in moving away from powerful smartphone processors and towards less powerful chips in embedded devices, a market that Sensinode looks set to help it tap into.
Arm has outpaced key rival Intel and the rest of the semiconductor market in recent years with growth driven by the use of its processors in smartphones and mobile devices such as the iPhone and tablet computers.
The company also licenses its processor designs and receives a royalty on every chip shipped in its customers’ products. Last year there were over 8bn Arm-based devices shipped worldwide, and the company made pre-tax profits of £276.5m.
Adam Gould, chief executive of Sensinode said, “The Arm architecture together with Sensinode’s software technology… will provide a compelling solution for internet of things developers.”
Sensinode will continue its commercial operations for new and existing customers after the acquisition is complete.
ARM has not revealed the financial terms of the deal.