ARM (ARMH) Stock Advances on Apical Acquisition

ARM (ARMH) stock is rising in pre-market trading on Wednesday as the company said it bought Apical for $350 million.

Author:: Kaya Yurieff
Publish date:: May 18, 2016 9:10 AM EDT

NEW YORK (TheStreet) -- Shares of ARM Holdings (ARMH) are gaining 2.41% to $40.85 in pre-market trading on Wednesday as the company said it bought imaging products company Apical for $350 million.

The move boosts Cambridge, U.K.-based ARM's exposure to the developing market of embedded computer vision, which uses digital processing and algorithms to interpret meaning from images and video, Reuters notes.

"The acquisition accelerates the ARM ecosystem's growth into new markets such as connected vehicles, robotics, smart cities, security systems, industrial/retail applications and Internet of Things devices," the company said in a statement earlier today.

Apical technology will also extend ARM's product portfolio in existing markets, including smartphones and cameras.

The company added that Apical's imaging products are used in more than 1.5 billion smartphones and about 300 million other consumer and industrial devices, such as tablets.

ARM is a provider of technology for Apple's (AAPL) iPhone, Reuters says.