Qualcomm Incorporated (NASDAQ: QCOM) has submitted an offer to acquire Veoneer for $37 per share, in an all-cash transaction. Qualcomm’s offer has been approved by its Board of Directors, and does not require the stakeholder approval. Also, it doesn’t have any financing conditions.
In his letter to Veoneer’s Board of Directors, Cristiano Amon, President and CEO of Qualcomm, said, “Qualcomm has long admired your company, employees and in particular, Arriver. The combination of Arriver’s differentiated Computer Vision, Drive Policy and other Driver Assistance assets, along with Qualcomm’s leading Snapdragon Ride Platform, broad technology portfolio and automotive customer traction will enable us to transform the ADAS segment, creating open and competitive platforms for automakers and Tier-1s.”
This move reinforces Qualcomm’s commitment to bring advanced technologies to automotive industry. It further represents a natural extension of Qualcomm’s digital chassis solutions. The company is witnessing a traction in automotive, with a revenue-design win pipeline of nearly $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.
DEAL CERTAINTY AND TIMING
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 our diligence. Qualcomm believes that its offer delivers superior value and deal certainty to Veoneer stockholders.
