Qualcomm Acquires Veoneer for $4.5 Billion, Drops Magna Deal

Qualcomm Acquires Veoneer, Outbidding Magna International

Qualcomm successfully completed the acquisition of Swedish automotive technology firm Veoneer, surpassing the bid submitted by Magna International through a more competitive offer.

Details of the Acquisition

Qualcomm, in partnership with investment group SSW Partners, announced on Monday the agreement to purchase Veoneer for $37 per share in an all-cash transaction.

Upon completion of the deal, SSW Partners intends to divest Veoneer’s Arriver technology – a sophisticated advanced driver assistance system (ADAS) comprising sensors and software – to Qualcomm.

SSW Partners will, however, retain Veoneer’s remaining Tier 1 supplier operations.

Previous Agreement and Qualcomm’s Intervention

Initially, Veoneer had reached an agreement to be acquired by Magna. However, Qualcomm’s subsequent bid, valued at $800 million – representing an 18% premium – altered the course of the transaction.

Magna, with a market capitalization of $25.3 billion, chose not to submit a counteroffer against Qualcomm’s $164.8 billion valuation.

Qualcomm’s Expanding Portfolio

This acquisition marks another significant expansion for Qualcomm beyond its core business.

The company, primarily recognized for its semiconductor and telecommunications equipment design and manufacturing, is actively diversifying its interests.

Earlier this year, in January, Qualcomm agreed to acquire high-performance computing startup Nuvia for $1.4 billion, signaling its intent to explore markets beyond the telecommunications sector.

Implications for ADAS Technology

This latest purchase is viewed as particularly positive for the advancement of ADAS technology.

Automakers are increasingly integrating these systems into new vehicles as standard features.

Collaborative History and Deal Closure

Qualcomm’s interest in Veoneer wasn’t unexpected.

The two companies had previously established a collaborative agreement earlier in the year to jointly develop software and chips for driver-assistance systems.

As a result of the terminated agreement, Magna will receive a “breakup fee” of $110 million.

The acquisition is anticipated to be finalized in the coming year.