- Veoneer shareholders benefit from an all-cash transaction at USD 37.00 per share.
- The acquisition agreement structure ensures the success of all of Veoneer's businesses.
American multinational chipmaker Qualcomm Inc. reportedly partnered with investment firm SSW Partners to acquire tech company Veoneer Inc. for USD 37.00 per share in an all-cash transaction, with an overall equity value of USD 4.5 billion.
Veoneer's competence in advanced driver assistance systems (ADAS) makes it a desirable acquisition target for Qualcomm and Magna (Canada’s Magna International Inc.).
Qualcomm proposed signing a collaboration agreement with Veoneer in January 2021 to develop Arriver, a software and silicon platform for driver-assistance systems, following which it sought to buy Veoneer in August for an 18.4% premium over Magna's USD 3.8 billion offer, which had already been accepted by Veoneer's board.
The automotive technology provider dissolved its earlier purchase agreement with Magna and canceled a special meeting set for October 19, 2021, to ratify that agreement. The tech company will pay Magna a USD 110 million termination fee, sources cited.
SSW Partners will buy all Veoneer's outstanding capital stock after closure, then sell the Arriver business to Qualcomm while keeping Veoneer's Tier-1 supplier businesses. The New York-based investment company will spearhead the search for long-term strategic partners. This transaction structure helps Veoneer's enterprises succeed in the long run.
The transaction has received a green light from the boards of directors of Veoneer and Qualcomm, and is subject to regulatory approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 in the U.S., some European foreign direct investment approvals, Veoneer stockholder approval, and other customary conditions. The deal is expected to be finalized in 2022.
Veoneer's Stockholm-listed shares, which spun off from leading automotive safety supplier Autoliv in 2018, soared 4.33% following the recent development, reaching 313.4 crowns (USD 35.91) at the closing.