Qualcomm Offers to Acquire Veoneer

Article By : Qualcomm Inc.

Qualcomm's offer of $37 per share represents an 18% premium to the Magna offer to acquire Veoneer.

Qualcomm Inc. has submitted an offer to acquire Veoneer for $37 per share, in an all-cash transaction. The offer has been approved by Qualcomm’s Board of Directors, does not require Qualcomm stockholder approval, and has no financing conditions.

The proposed acquisition is consistent with Qualcomm’s growth and diversification strategy, reinforcing the company’s commitment to bringing 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.

Qualcomm will fund the transaction with existing cash resources, and therefore, its offer is not subject to any financing contingency or condition. This offer has been unanimously approved by Qualcomm’s Board of Directors and does not require Qualcomm stockholder approval.

Qualcomm is prepared to immediately commence a focused diligence process, which we anticipate being able to complete in short order. While Qualcomm does not believe there are material regulatory clearance concerns in respect to its offer, Qualcomm will agree to the same regulatory provisions as the Magna agreement and expects to provide even greater regulatory-related closing protection following its diligence.

 

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