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Qualcomm Offers $37 a Share for Swedish Auto-Tech Firm Veoneer

Semiconductor titan Qualcomm offered to buy Swedish auto-technology company Veoneer for $37 a share cash.
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Semiconductor titan Qualcomm  (QCOM) - Get Free Report offered to buy the Stockholm auto-technology company Veoneer  (VNE) - Get Free Report for $37 a share cash.

The San Diego chipmaker’s stock recently traded at $145.71, down 1.7%. 

Veoneer shares traded on the New York Stock Exchange soared 25% to $39.10. The move past the offer price indicates that some investors expect a higher bid to emerge.

Qualcomm will fund the transaction with cash on hand. The offer has been approved by Qualcomm’s board and doesn’t need its holders' approval.

The proposed acquisition "reinforces [Qualcomm's] commitment to bring advanced technologies to the automotive industry and represents a natural extension of Qualcomm’s digital chassis solutions," the company said in a statement. 

"The company continues to see traction in automotive, with a revenue-design win pipeline of approximately $10 billion.”

Qualcomm Chief Executive Cristiano Amon said, “It is becoming increasingly important for automakers to have a partner who develops horizontal platforms that drive innovation and enable competition."

The deal would bring together Qualcomm's automotive solutions with Veoneer’s assisted-driving assets "to deliver a competitive and open ADAS platform to automakers and Tier 1 suppliers,” he said.

Last year Qualcomm and Veoneer agreed to deliver driver-assistance systems using Veoneer software and Qualcomm chips.

Last week, Qualcomm reported fiscal 2021 third-quarter results that topped analyst estimates.

The chipmaker said profit for the quarter ended June 27 totaled $1.92 a share on revenue of $7.99 billion.