Published in Transportation

Qualcomm tries outbid Magna for Veoneer

by on06 August 2021

Battle in the car industry 

Qualcomm is having a crack at outbidding Magna in its battle to buy Automotive outfit Veoneer.

It is bidding for Veoneer for $37 per share, in an all-cash transaction. Its offer has been approved by Qualcomm’s Board of Directors, does not require Qualcomm stockholder approval and has no financing conditions.

This proposed acquisition is consistent with Qualcomm’s growth and diversification strategy. It reinforces the company’s commitment to bring advanced technologies to the automotive industry and represents a natural extension of Qualcomm’s digital chassis solutions. The company continues to see traction in automotive, with a revenue-design win pipeline of approximately $10 billion.

Qualcomm CEO president 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.” 

Qualcomm will fund the transaction with existing cash resources, and therefore, its offer is not subject to any financing contingency or condition. 

Qualcomm is prepared to immediately commence a focused diligence process, which it anticipates being able to complete soon. While Qualcomm does not believe there are material regulatory clearance concerns in respect to its offer, Qualcomm will agree to the same regulatory provisions as the Magna agreement and expects to provide even greater regulatory-related closing protection following their diligence. Qualcomm believes that its offer delivers superior value and deal certainty to Veoneer stockholders, the company said

Last modified on 03 October 2021
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