British chip-maker ARM, which currently holds patents for over 90% of chip designs in smartphones worldwide, is reportedly in closing talks to buy an Israeli mobile security company, Sansa security for around $80 million, reports WSJ.
Founded in 2000, Sansa Security provides security solutions for mobile handsets, smart phones, and Wi-Fi devices. It offers CLIENT, a software stack that runs on the device, alongside another offering called SERVER that serves the client with the required information from either a Sansa cloud service or the clients own cloud service.
ARM designs technology for chips, found in more than 95% of the world’s smartphones. It claims to have around 1100 licenses signed with over 300 companies and receive royalties for every ARM based chip shipped and housed into your smartphone. ARM’s business model revolves around designing and licensing of IP rather than the manufacturing and selling of actual semiconductor chips.
Sansa Security has raised over $37 million in investments from investors including Accel Partners, Sequoia Capital, Genesis Partners Ltd. and Pitango Venture Capital.
If this deal goes through, ARM plans to plant a research and development department in Israel through Sansa Security. This deal will also take ARM a step closer to its Internet of Things efforts.
Ever since Internet of Things projected a flourishing future, every major giant is making efforts to tap into this space. With its new acquisition, ARM would be looking forward to design chips for connected devices that would be much necessarily needed once the area starts to bloom at its full capacity.
More importantly though, Sansa Security’s tech could be embedded by ARM in its chip designs, thus offering secured chip solutions to its customers to add an extra layer of security in the usually vulnerable smartphones.
Recently, Samsung staged a similar effort by actually building three low power chips for connected devices. Other major giants are too making efforts to merge the direction of their business model to the fortune of Internet of Things.
A research and development department in Israel would keep ARM closer to Sansa Security that would prove useful in providing perfect assistance to conceive a foray into Internet of Things department.
FEATURED IMAGE : Bloomberg