Qualcomm and SSW Partners said they have reached a definitive agreement to acquire automotive technology provider Veoneer for USD 37.00 per share in an all-cash transaction, representing a total of USD 4.5 billion. Veoneer has terminated its acquisition agreement with Magna International and cancelled its 19 October special meeting to authorise that deal. The transaction is expected to close in 2022.
Veoneer will pay a termination fee of USD 110 million to Magna, which had offered USD 31.25 per share. Magna is waiving the four-day matching period to make a counterproposal. Swamy Kotagiri, Magna's CEO, said its waiver decision underscores its disciplined approach to valuation as its pursues strategic acquisitions and acts in the best interests of its shareholders
At closing, SSW Partners will acquire all of the outstanding capital stock of Veoneer, shortly after which it will sell the Arriver business to Qualcomm. Qualcomm will incorporate Arriver’s Computer Vision, Drive Policy and Driver Assistance assets into its leading Snapdragon Ride Advanced Driver Assistance Systems (ADAS) line.
Cristiano Amon, president and CEO of Qualcomm, said integrating the Veoneer assets will accelerates its ability to provide a horizontal ADAS product as part of its digital chassis platform.
SSW Partners will work with Veoneer’s management to ensure the pursuit of Veoneer’s existing business plan and to identify long-term partners for the Restraint Control Systems (RCS) and Active Safety businesses.
