Qualcomm acquires Veoneer for 29 billion yuan, adding to its investment in autonomous driving
Latest update time：2021-10-09 22:58
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On October 5, Qualcomm and private equity fund SSW Partners reached an agreement to acquire automotive technology company Veoneer. According to the agreement, SSW Partners will fully acquire Veoneer at a price of US$37 per share (approximately RMB 238.47), with a total price of US$4.5 billion (approximately RMB 29.003 billion).
Qualcomm, SSW Partners and Veoneer reach final acquisition agreement
After the transaction is completed, SSW Partners will sell Veoneer's Arriver software business to Qualcomm, but SSW Partners will retain Veoneer's Tier 1 business, which means that the battle between Qualcomm and Magna for Veoneer has come to an end.
Qualcomm CEO Cristiano Amon said he does not want Arriver to fall into the hands of Magna. He is eager to create greater business potential for Qualcomm outside the smartphone market to further broaden Qualcomm's revenue sources.
Magna launched its acquisition of Veoneer in September 2019 but later suspended the deal. Dan Levy, an automotive analyst at investment bank Credit Suisse, believes Magna could potentially acquire Veoneer's non-Arriver assets, including electronics and sensors for safety warning functions.
As for the reason for giving up, Magna CEO Swamy Kotagiri said, "Magna's abandonment of the acquisition of Veoneer is based on our rigorous valuation method. We pursue strategic acquisitions and will continue to create the greatest benefits for shareholders."
On the other hand, Qualcomm's acquisition of Arriver through the acquisition of Veoneer will strengthen Qualcomm's strength in the emerging driver assistance technology market and carve out a more important role for Qualcomm outside the smartphone market. In terms of mastering the core technology of self-driving cars, Qualcomm is improving its capabilities to better compete with its competitors. Veoneer and Qualcomm said that the boards of directors of both parties have signed the acquisition transaction agreement and the transaction is expected to be completed next year.
Next year, Qualcomm's Snapdragon Ride autonomous driving platform will be mass-produced and installed in vehicles. After integrating Veoneer's autonomous driving vision software, it will be able to provide a better platform for car companies. This is also the direct reason why Qualcomm acquired Veoneer.
However, some people also believe that despite defeating its rival Magna, Qualcomm's acquisition may still face antitrust regulatory review. Three years ago, Qualcomm's plan to acquire rival chipmaker NXP for $44 billion was aborted due to lack of approval from antitrust regulators.
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