Deal: Qualcomm, SSW To Buy Sweden’s Veoneer For $4.5B
Chipmaking giant Qualcomm has emerged as the winning bidder for Veoneer (NYSE: VNE), a Swedish company that makes hardware and software systems for automated and assisted driving. The company beat out Magna, the Canadian auto parts giant, to emerge with the winning bid.
- In July, Magna agreed to buy Veoneer for $3.8bn in cash. However, Qualcomm submitted a higher offer of $4.5bn a month after Magna’s agreement, beating the Canadian company’s price considerably.
Expectedly, Veoneer shareholders have accepted the higher offer and agreed to a sale to Qualcomm. But there’s a catch, Qualcomm won’t buy Veoneer solely but is partnering with a New York-based investment firm, SSW Partners, for the deal.
- It appears that Qualcomm’s primary target with Veoneer was its automated driving business rather than the whole company. Fortunately, it’s gotten its exact wish by finding a partner to takeover Veoneer’s other businesses while it retains just the division it wants.
- How much Qualcomm will pay for the Arriver business wasn’t disclosed.