SoftBank at Talks to Sell Arm’s Fortress Security Unit

TOKYO — SoftBank Group Corp. is in talks to sell Fortress Information Security, the cybersecurity arm of its Arm Ltd. chip design unit, to an unidentified buyer, Nikkei has learned. 

The Japanese conglomerate is looking to book a profit by offloading the unit, which it bought for about $100 million in 2019. The deal could be announced as early as this fall.

Fortress Information Security was founded in 2007 and is headquartered in San Jose, California. It offers a range of cybersecurity products and services, including encryption, threat detection and response, and identity management.

The sale of Fortress Information Security would be part of SoftBank’s broader plan to divest non-core assets and focus on its core businesses, such as mobile telecommunications, artificial intelligence and financial services.

In recent months, SoftBank has sold off a number of assets, including its stake in ride-hailing company Uber Technologies Inc. and its SoftBank Robotics unit. The company has also been reducing its debt load, which stood at about $86 billion as of March 2023.

The sale of Fortress Information Security would be the latest in a series of divestments by SoftBank. The company is also exploring the sale of its stake in Arm, which it bought for $32 billion in 2016.

SoftBank declined to comment on the talks to sell Fortress Information Security.

Nikkei’s reporting is based on information obtained from multiple sources. The sources requested anonymity because they were not authorized to speak publicly about the matter.

**Additional context**

Fortress Information Security is a leading provider of cybersecurity solutions to enterprises and governments worldwide. The company’s products and services are used to protect against a wide range of cyber threats, including data breaches, ransomware attacks, and phishing scams.

Fortress Information Security has a strong track record of innovation and has been recognized for its expertise in the cybersecurity industry. The company has been named a leader in the Gartner Magic Quadrant for Cloud Access Security Brokers for five consecutive years.

The sale of Fortress Information Security would be a significant development in the cybersecurity industry. The company is a major player in the market and its sale would likely have a ripple effect on the competitive landscape.

It is not yet clear who the potential buyer of Fortress Information Security is. However, it is likely that the buyer will be a large technology company or private equity firm with a strategic interest in the cybersecurity market.

The sale of Fortress Information Security is expected to be completed by the end of the year. The deal is subject to regulatory approval and other customary closing conditions..

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