Veoneer, which had already signed a $3.8bn merger deal with Magna International in July, will evaluate the offer from the semiconductor and telecommunications firm
Veoneer is a provider of automotive safety technology. (Credit: Veoneer Inc.)
Qualcomm has offered to acquire Sweden-based automotive technology company Veoneer for $4.6bn in an all-cash transaction.
As per the non-binding proposal, Veoneer’s shareholders are being offered $37 per share in cash by the US-based semiconductor and telecommunications firm.
Qualcomm’s offer comes after last month’s definitive merger deal worth $3.8bn signed by the automotive technology company with Canada-based Magna International.
The earlier offer from the Canadian mobility technology company is at $31.25 per share in cash, which is inclusive of Veoneer’s debt of $500m.
Qualcomm said that its offer, which has been approved by its board, doesn’t need the company’s shareholders’ approval and has no financing conditions.
According to the company, the proposed deal is in line with its growth and diversification strategy. Furthermore, the company said that the acquisition strengthens its commitment to provide advanced technologies to the automotive sector, while representing a natural extension of its digital chassis solutions.
Qualcomm president and CEO Cristiano Amon said: “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.”
Responding to the offer, Veoneer said that its board will evaluate it in accordance with its legal duties and the terms of the merger agreement with Magna International.
The company said that the merger deal signed with the Canadian firm remains in place.
Headquartered in Stockholm, Veoneer is a publicly-traded company in the US where it is listed on the New York Stock Exchange since 2018.
The company designs, develops and manufactures software, hardware, and systems for advanced driving assistance systems, occupant protection, and collaborative and automated driving to original equipment manufacturers (OEMs) around the world.