Qualcomm, SSW to Buy Veoneer for $4.5 Billion; Magna Deal Terminated
October 04 2021 - 9:56AM
Dow Jones News
By Colin Kellaher
Qualcomm Inc. on Monday said it has teamed with investment firm
SSW Partners on a $4.5 billion deal to buy Veoneer Inc., snatching
the Swedish automotive-technology company from Canada's Magna
International Inc.
San Diego chip maker Qualcomm said SSW will acquire Veoneer for
$37 a share and then sell Veoneer's Arriver sensor perception and
drive policy software platform to Qualcomm.
The amount Qualcomm would pay for Arriver wasn't immediately
available.
Magna in July agreed to buy Veoneer for $31.25 a share in a bid
to bolster its position in advanced driver assistance systems, or
ADAS, which includes features such as adaptive cruise control and
lane-keeping assistance.
Qualcomm in August stepped in with a bid of $37 a share, and
Veoneer agreed to hold talks on a deal. Veoneer's agreement with
Magna allows the Stockholm company to accept a superior proposal
and walk away from the Magna deal in exchange for a $110 million
breakup fee.
Qualcomm and SSW on Monday said Veoneer terminated its agreement
with Magna and canceled a shareholder vote scheduled for Oct. 19 to
approve the deal.
The Qualcomm/SSW deal represents an 18% premium to the Magna
agreement and an 86% premium to Veoneer's July 22 closing price of
$19.93, before the Magna deal was announced. Veoneer shares closed
at $34.55 on Friday.
Qualcomm and SSW said they expect the Veoneer deal to close next
year.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
October 04, 2021 09:41 ET (13:41 GMT)
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