Qualcomm acquires Veoneer for $4.5 billion, canceling its settlement with Magna – TechCrunch

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Qualcomm scored the acquisition of Swedish automotive tech firm Veoneer, nudging out Magna Worldwide with a better bid.

Qualcomm and funding group SSW Companions stated Monday they might purchase Veoneer for $37 per share in an all-cash transaction. At closing, SSW stated it might promote Veoneer’s Arriver tech – a sophisticated driver help system stack that features sensors and software program – to Qualcomm and retain the Swedish firm’s different Tier 1 provider companies.

Veoneer had earlier agreed to promote itself to Magna. It seemed like that deal would transfer ahead, till Qualcomm submitted its bid for $800 million, or 18%, extra. Magna, which has a market capitalization of $25.3 billion in comparison with Qualcomm’s $164.8 billion, didn’t submit a counterbid.

This isn’t Qualcomm’s first main acquisition this yr. The corporate, which is mainly identified for designing and manufacturing semiconductors and telecommunications gear, is branching out. In January, Qualcomm agreed to accumulate high-performance computing startup Nuvia for $1.4 billion, because it sought out markets past telecoms. This newest buy is very bullish information for ADAS expertise, which automakers are beginning to roll out in new automobiles as a matter after all.

When Qualcomm submitted its bid to accumulate Veoneer — almost a month after Magna’s — it was not solely a shock. The 2 corporations signed a collaborative settlement originally of this yr to develop software program and chips for driver-assistance programs.

Veoneer can pay Magna a “breakup price” of $110 million. The deal is anticipated to shut subsequent yr.

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