Qualcomm beats out Magna in bid for Veoneer
In a three-way deal, Qualcomm is acquiring what it sees as Veoneer’s most interesting division, its sensor perception and drive policy software platform Arriver. Initially, equity investor SSW Partners will acquire all of Veoneer’s outstanding stock, Qualcomm announced in a press release today. The acquisition values Veoneer at $4.5 billion. In a second step, SSW Capital will carve out the Arriver business and hand it over to Qualcomm. SSW Partners will retain the remaining Veoneer Tier 1 business with restraint control and active safety systems in its own hands for the time being; it is said that “strong, long-term strategic partners” will be sought for the further exploitation of this Veoneer business.
Having already demonstrated a successful partnership with Arriver, Qualcomm believes that the Arriver business will thrive at Qualcomm. Upon close of the transactions, Qualcomm intends to incorporate Arriver’s Computer Vision, Drive Policy and Driver Assistance assets into its leading 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.
“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,” triumphed 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.”
Meanwhile, Magna has abandoned its takeover plans; the board of the Canadian-Austrian automotive supplier announced its withdrawal from the deal. Magna had first made a takeover offer to Veoneer in August, but was outbid shortly afterwards by Qualcomm together with SSW.
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