- Qualcomm Incorporated (NASDAQ: QCOM) announced it submitted an offer to buy Veoneer Inc (NYSE: VNE) for $37 per share in a deal valued at $4.6 billion. These are the details.
Qualcomm Incorporated (NASDAQ: QCOM) announced it submitted an offer to buy Veoneer Inc (NYSE: VNE) for $37 per share in a deal valued at $4.6 billion in an all-cash transaction. The offer was approved by Qualcomm’s Board of Directors, does not require Qualcomm stockholder approval, and has no financing conditions.
Qualcomm said that the proposed deal is consistent with the company’s growth and diversification strategy. And 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 is continuing to see traction in automotive with a revenue-design win pipeline of approximately $10 billion.
Qualcomm is going to fund the transaction with existing cash resources and its offer is not subject to any financing contingency or condition. The offer was unanimously approved by Qualcomm’s Board of Directors and does not require Qualcomm stockholder approval.
The company is prepared to immediately commence a focused diligence process, which they anticipate being able to complete in short order. And while Qualcomm does not believe there are material regulatory clearance concerns in respect to its offer, the company will agree to the same regulatory provisions as the Magna agreement and expects to provide even greater regulatory-related closing protection following the diligence process. So Qualcomm believes that its offer delivers superior value and deal certainty to Veoneer stockholders.
KEY QUOTE:
“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.”
- Cristiano Amon, president and CEO of Qualcomm Incorporated
