Qualcomm Inc. announced it 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.
This proposed acquisition is consistent with Qualcomm’s growth and diversification strategy. It reinforces the company’s 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.
Magna announced its plans to acquire Veoneer in late July for $31.25 per share in cash.
Veoneer’s board of directors has determined that Qualcomm’s proposal to acquire Veoneer would reasonably be expected to result in a “Superior Proposal,” as defined under the terms of Veoneer’s merger agreement with Magna.
As a result of the Board’s determination, Veoneer may under the terms of the Merger Agreement engage in discussions with Qualcomm and says it intends to do so.
The Merger Agreement remains in full force and effect, and the board of directors of Veoneer has not withdrawn or modified its recommendation that the stockholders of Veoneer vote in favor of the approval of the merger, the Merger Agreement and the transactions contemplated as a result.
