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Keil Software, has been acquired by ARM, a manufacturer of popular microcontroller IP.

Keil Software is a leading provider of microcontroller compilers and development tools. Keil operates jointly through two independently-owned companies: Keil Elektronik GmbH in Munich, Germany, led by Reinhard Keil; and Keil Software, Inc. in Plano, Texas led by Jon Ward.

Details (updated)
The combined purchase was for $19.4 million US.
Purchase of 100% of German corporation Keil Electronik GmbH amounted to £7.4 million ($13.2 million US)
Purchase of 100% of Keil Software USA amounted to £3.5 million ($6.25 million US)
Keil Software has combined gross assets valued at $4.6 million.

Statements
"ARM identified the MCU market as a critical growth area for our future business and with this acquisition, we will be able to accelerate progress in that market by offering a more complete, more compelling solution," said Warren East, CEO, ARM. "As the MCU applications shift from 8/16-bit to 32-bit solutions, the combination of the ARM Cortex processor, which was specifically designed for microcontroller applications, our RealView high-performance compiler, and Keil's complementary MCU tools for ARM, will enable new generations of ARM MCU solutions."

"Keil and ARM have a long-standing relationship through our membership of the ARM Connected Community," said Reinhard Keil, CEO, Keil Elektronik GmbH. "We feel that with this acquisition we are in a better position to deliver complete offerings to the high-growth, 32-bit microcontroller market while continuing to support our 8051 and C16x compilers within the uVision environment."

What This Means to 8051 Users
According to ARM's financial statements, it is ARM's intention to use this aquisition to migrate 8051 users to ARM products. In particular is a statement in ARM's Financial Report which reads, "Cortex-M3: The 8051 Replacement". This implies shoving the majority of Keil's development efforts into the ARM, while foregoing any further 8051 compiler development.

Keil Software employs 23 people worldwide. Keil manufactures and distributes a broad range of development tools including ANSI C compilers, macro assemblers, debuggers, linkers, library managers, firmware and real-time kernels. Currently more than 100,000 microcontroller developers use Keil products. Keil is known for it's excellent technical support, as well as dScope, it's cycle-accurate software simulator