Qualcomm and SSW Partners To Acquire Veoneer For $4.5 Billion

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Veoneer, which was previously in talks with Magna International Inc, has terminated their acquisition agreement

Chipmaker Qualcomm Inc and New York-based investment partnership SSW Partners announced that they have reached a definitive agreement to acquire automotive tech company Veoneer. 

The acquisition will be for $37.00 per share in an all-cash transaction, representing a total equity value for Veoneer of $4.5 billion. 

Veoneer, which was previously in talks with Magna International Inc, has terminated their acquisition agreement.  

In a statement, the companies said that 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. Arriver is Veoneer’s software unit for the development of the complete perception and drive policy software stack.

SSW Partners, on the other hand, will lead the process of finding strong, long-term strategic partners for the Restraint Control Systems (RCS) and Active Safety businesses., it added. SSW Partners’ investment in Veoneer will represent its first capital commitment as a partnership since its founding at the beginning of the year.

Qualcomm will incorporate Arriver’s Computer Vision, Drive Policy and Driver Assistance assets into its 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, the company said.

“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.”

Jan Carlson, Chairman, President and CEO of Veoneer. “This transaction provides attractive opportunities to our Arriver team at Qualcomm and allows our other businesses to find long-term industrial partners where they can continue to develop.”

“We are excited to partner with Qualcomm to acquire Veoneer,” said Antonio Weiss and Josh Steiner of SSW Partners. “While Qualcomm focuses on the Arriver business, we will focus on finding strong, long-term strategic homes for the rest of Veoneer’s businesses – we are committed to ensuring that Veoneer’s employees prosper, the businesses continue to innovate and grow and customers continue to have uninterrupted access to the outstanding service and quality for which Veoneer is known. We have high regard for Veoneer’s management team and look forward to partnering with them to ensure a successful outcome for all stakeholders.”

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