Semiconductor and wireless technology company Qualcomm in collaboration with SWW Partners has acquired automotive technology firm Veoneer. It is reported that the acquisition, purchased in an all-cash transaction for US$37 per share, will augment Qualcomm’s ability to create an “open and competitive” Advanced Driver Assistance Systems (ADAS) platform for the global automotive industry.
The acquisition brings Veoneer’s total equity value to US$4.5bn. Veoneer has terminated its prior acquisition agreement with Magna International Inc. ("Magna") and cancelled its October 19, 2021 meeting that was previously scheduled to approve that agreement. At closing, SSW Partners will acquire all of the outstanding capital stock of Veoneer, shortly after which it will sell the Arriver business to Qualcomm and retain Veoneer's Tier-1 supplier businesses. SSW Partners will lead the process of finding strong, long-term strategic partners. This transaction structure facilitates the long-term success of all Veoneer's businesses.
"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," said Cristiano Amon, president, and CEO of Qualcomm Incorporated.
"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,” he added.
Partnership with Arriver
Having already demonstrated a successful partnership with Arriver, Qualcomm believes that the Arriver business will thrive at Qualcomm. Upon the close of the transactions, Qualcomm will incorporate Arriver's Computer Vision, Drive Policy, and Driver Assistance assets into its leading Snapdragon Ride Advanced Driver Assistance Systems (ADAS) solution. This will augment Qualcomm's ability to deliver an open and competitive ADAS platform for automakers and Tier-1s at scale.
SSW Partners will work with Veoneer's management to ensure the pursuit of Veoneer's existing business plan and to identify strong, long-term strategic partners for the Restraint Control Systems (RCS) and Active Safety businesses. The principals of SSW Partners have substantial investing, operating, and transaction experience internationally, as well as a track record of success in collaborating with management teams in multiple geographies and industries. They are experienced investors and advisors in both Europe and the automotive sector and will prioritise the smooth continuation of business activities for the customers and employees of the RCS and Active Safety businesses. SSW Partners' investment in Veoneer will represent its first capital commitment as a partnership since its founding at the beginning of the year.