Qualcomm and SSW Partners have announced the acquisition of Veoneer for$4.5 billion. 

Featured

• We're not ready for the impact of generative AI on elections
• This is the$300 Android phone to beat in 2023 - and it even has a stylus
• 5 things I learned while building my smart home
• The best laptops under$1,000: MacBook, Surface Pro, HP models compared

On Monday, the US chip giant said the deal has been agreed as an all-cash transaction at$37 per share.

Magna intended to acquire the company for$31.25 per share in an equity agreement worth$3.8 billion. The firm's intention to purchase was announced in July, however, it seems that  Veoneer, an automotive technology company, also engaged the interest of Qualcomm and SSW Partners. 

After the$4.5 billion counter offer was laid on the table, Magna was given four days to match or improve its deal -- a right that was waived. 

Instead, Veoneer will pay a termination fee of$110 million to Magna. 

Headquartered in Stockholm, Sweden, Veoneer develops driver assistance technology based on mobile connectivity. Advanced Driver-Assistance Systems (ADAS), hardware, and software are the focus, with particular attention paid to safety and collaborative driving. 

The company accounts for roughly 7,500 employees in 11 countries, with sales in 2020 reaching$1.37 billion. 

At closing, SSW Partners will acquire all outstanding capital stock and will retain Veoneer's Tier-1 supplier businesses. Qualcomm will then be sold the Arriver business, a unit that has created a platform combining Veonee perception and driving policy software stacks and Qualcomm Snapdragon Ride.

"Qualcomm believes that the Arriver business will thrive at Qualcomm," the company says. "Qualcomm will incorporate Arriver's Computer Vision, Drive Policy and Driver Assistance assets into its leading Snapdragon Ride ADAS solution. This will augment Qualcomm's ability to deliver an open and competitive ADAS platform for automakers and Tier-1s at scale."

The acquisition has been accepted by the Qualcomm and Veoneer boards of directors but will require regulatory approval. If permission is granted, the deal is expected to close next year. 

"Magna's waiver decision underscores our disciplined approach to valuation as we pursue strategic acquisitions and continue to act in the best interests of our shareholders," commented Swamy Kotagiri, Magna CEO. "We remain confident in our long-term value creation potential and our path forward as one of the world's largest automotive suppliers and key enabler to meet future mobility needs."

Previous and related coverage

• Qualcomm launches drone 5G platform, reference design
  
• Qualcomm rolls out IoT-as-a-service for 30 different verticals
  
• Qualcomm launches new platforms for IoT across industries
  

Have a tip?Get in touch securely via WhatsApp Signal at +447713 025 499, or over at Keybase: charlie0