Qualcomm launched a bid to acquire Veoneer for $37 per share, in an all-cash transaction valued at approximately $4.6 billion
Qualcomm said the proposal reflects its commitment to bring advanced technologies to the automotive industry and represents a natural extension of Qualcomm’s digital chassis solutions. The company continues to see traction in automotive, with a revenue-design win pipeline of approximately $10 billion.
“As the automotive industry continues to transform, it is becoming increasingly important for automakers to have a partner who develops horizontal platforms that drive innovation and enable competition. The proposed acquisition will bring together our industry-leading automotive solutions with Veoneer’s assisted driving assets to deliver a competitive and open ADAS platform to automakers and Tier 1 suppliers at scale,” said Cristiano Amon, president and CEO of Qualcomm Incorporated.
Qualcomm’s offer exceeds the acquisition proposal announced by Magna on July 29th for $ 31.25 per share in cash, representing a total value of $ 3.8 billion, and an enterprise value of $ 3.3 billion, inclusive of Veoneer’s cash, net of debt and other debt-like items as of March 31, 2021.
Veoneer said its board of directors will evaluate the proposal from Qualcomm consistent with its legal duties and the terms of the Magna merger agreement. On July 22, 2021, Veoneer announced that it entered into a definitive merger agreement, approved by Veoneer’s board of directors, with Magna International Inc. The merger agreement remains in place.
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