Qualcomm and SSW Partners reach definitive agreement to acquire Veoneer

Qualcomm and SSW Partners reach definitive agreement to acquire Veoneer

— All-Cash Transaction at $37 Per Share Provides Higher Value to Veoneer Shareholders —

— Agreement will accelerate Veoneer’s success across all of its businesses —

— Strengthens Qualcomm’s ability to build an open and competitive ADAS platform for the global automotive industry —

— SSW Partners to acquire Veoneer’s RCS and Active Safety businesses and lead process to identify long-term strategic partners 

SAN DIEGO, Oct. 4, 2021 – Qualcomm Incorporated and New York-based investment firm SSW Partners (“SSW Partners”) today announced that they have entered into a definitive agreement to acquire Veoneer Inc. for $37 per share in an all-cash transaction with a total equity value of $4.5 billion. Veoneer has terminated its prior acquisition agreement with Magna International Inc. (“Magna”) and canceled its special meeting of shareholders scheduled for October 19, 2021 to approve the agreement.

At the closing of this transaction, SSW Partners will acquire all outstanding shares of Veoneer and will shortly thereafter sell the Arriver business to Qualcomm and retain Veoneer's Tier 1 supplier business. SSW Partners will lead the process of seeking a strong, long-term strategic partner. This transaction structure is conducive to the long-term success of all Veoneer businesses.

Prior to this transaction, Qualcomm had established a successful partnership with Arriver and was confident that Arriver's business would flourish at Qualcomm. After the acquisition, Qualcomm will integrate Arriver's computer vision, driving strategy, and driver assistance assets into its leading Snapdragon Ride™ advanced driver assistance system (ADAS) solution. This will enhance Qualcomm's ability to provide competitive open ADAS platforms to automakers and Tier 1 suppliers in a scaled manner.

SSW Partners will work with Veoneer's management team to ensure the smooth implementation of Veoneer's existing business plans and will seek a strong long-term strategic partner for Veoneer's Restraint Control Systems (RCS) and Active Safety businesses. The SSW Partners management team has extensive international investment, operating and transaction experience, and has created many successful cases in multiple countries and regions in multiple industries in collaboration with the management teams of its subsidiaries. As investors and advisors with extensive experience in both Europe and the automotive industry, they will prioritize the smooth continuation of business activities for customers and employees of the RCS and Active Safety businesses. SSW Partners' investment in Veoneer is its first capital investment project since its establishment as a partnership investment institution at the beginning of the year.

“Qualcomm and Arriver are a natural fit,” said Qualcomm President and CEO Amon. “By combining these assets, Qualcomm will be able to accelerate its ability to deliver leading lateral ADAS solutions as part of the Qualcomm Digital Chassis Platform. We are confident that this transaction and structure will be beneficial to both Qualcomm and Veoneer shareholders and will drive greater success across all of Veoneer’s businesses and provide better prospects for its customers and employees.”

Jan Carlson, chairman, president and CEO of Veoneer, said: "This transaction creates greater value for Veoneer shareholders and provides our Arriver team with an excellent opportunity to grow within Qualcomm, while our other businesses will have the opportunity to seek long-term industry partners for continued growth."

Carlson added, “Vineland’s board and management team remain focused on achieving our goals and driving continued progress across the company, as well as delivering new technologies and programs to our customers. Despite significant challenges facing the industry, our team is doing an outstanding job driving the company’s success based on Veoneer’s industry-leading partner ecosystem, cutting-edge technology, and strong order book.”

Antonio Weiss and Josh Steiner of SSW Partners said, "We are pleased to be working with Qualcomm to acquire Veoneer. Qualcomm will focus on the Arriver business, and we will focus on finding strong, long-term strategic partners for Veoneer's other businesses - we are committed to the well-being of Veoneer's employees, ensuring the continued innovation and growth of the Veoneer business, and providing Veoneer's customers with the same outstanding service and quality that Veoneer is known for. We have great respect for Veoneer's management team and look forward to working with them to create a win-win situation for all parties involved."

About Qualcomm 

Qualcomm is the world's leading wireless technology innovator and a driving force behind the development, commercialization and scale-up of 5G. Our invention of connecting mobile phones to the Internet opened the era of mobile Internet. Today, our basic technology enables the entire mobile ecosystem, and our inventions are found in every 3G, 4G and 5G smartphone. We bring the advantages of mobile technology to new industries such as automobiles, the Internet of Things, and computing, creating a new world where people and everything can communicate and interact smoothly.

Qualcomm Incorporated includes our licensing business, QTL, and the vast majority of our patent portfolio. Qualcomm Technologies, Inc. (QTI), a wholly owned subsidiary of Qualcomm Incorporated, operates, along with its subsidiaries, substantially all of our engineering, research and development functions, and substantially all of our products and services businesses, including, our QCT semiconductor business.

About SSW Partners LP

SSW Partners invests in quality businesses and works with partners to create lasting value for all stakeholders. We focus on businesses that continually invest in products and people, build reputations based on the quality of the goods they produce or the services they provide, demonstrate the ability to innovate and continuously improve, and prioritize the interests of all stakeholders, including employees, customers, owners, and the communities in which the business operates.

About Veoneer

Veoneer is a global leader in automotive technology. Our corporate purpose is to build trust in mobility. We design, develop and manufacture cutting-edge software, hardware and systems for occupant protection, advanced driver assistance systems and collaborative automated driving for OEMs worldwide. Veoneer is headquartered in Stockholm, Sweden, with 7,500 employees in 11 countries. In 2020, sales totaled EUR 1.37 billion. The company has a history of nearly 70 years in automotive safety development. In 2018, Veoneer became an independent listed company on the New York Stock Exchange (NYSE: VNE) and Nasdaq Stockholm (SSE: VNE SDB).