The Swedish firm has scrapped its previously announced $3.8bn deal with Magna International following the superior proposal
US-based semiconductor manufacturer Qualcomm and investment firm SSW Partners have signed an agreement to jointly acquire Sweden-based automotive technology company Veoneer for $4.5bn in cash.
As per the terms of the deal, shareholders of the publicly listed firm will be paid $37 per share.
Veoneer’s board has approved the transaction after determining the offer from Qualcomm and SSW Partners to be a superior proposal compared to the previously announced merger agreement with Magna International.
The Swedish firm has scrapped its $3.8bn deal with Magna International, which is a Canadian mobility technology company. The latter will be paid a termination fee of $110m.
According to Qualcomm, at the closing of its deal, SSW Partners will acquire all of the outstanding capital stock of Veoneer. Shortly after this, the investment firm will divest the Arriver business to it, while retaining Veoneer’s Tier-1 supplier businesses.
Qualcomm said that SSW Partners will be responsible for leading the process of getting strong, long-term strategic partners on board.
Arriver is a collaboration between Veoneer and Qualcomm that aims to help automakers to bring more safety benefits to drivers starting from 2024.
Veoneer chairman, president, and CEO Jan Carlson said: “This transaction creates superior value for our shareholders.
“It also provides attractive opportunities to our Arriver team at Qualcomm and allows our other businesses to find long-term industrial partners where they can continue to develop.”
After the closing of the deals, Qualcomm will incorporate Arriver’s Computer Vision, Driver Assistance, and Drive Policy assets into its Snapdragon Ride Advanced Driver Assistance Systems (ADAS) solution.
Qualcomm president and CEO Cristiano Amon said: “Qualcomm is the natural owner of Arriver. By integrating these assets, Qualcomm accelerates its ability to deliver a leading and horizontal ADAS solution as part of its digital chassis platform.
“We believe that this transaction and structure benefits both Qualcomm’s and Veoneer’s shareholders, positions all of Veoneer’s businesses for success and provides a compelling opportunity to customers and employees.”
The deal, which is subject to regulatory approvals in the US, Europe, approval from Veoneer’s stockholders, and other customary conditions, is expected to close next year.