Qualcomm Proposes To Acquire Veoneer; Offer Represents 18% Premium To Magna Offer

Qualcomm Incorporated (QCOM) has submitted an offer to acquire automotive technology company Veoneer for $37 per share, representing a total equity value of $4.6 billion. Veoneer produces sensors, control units, software and systems for restraint control systems, advanced driving assistance systems, and Collaborative and Automated Driving. It was spun-off from Autoliv in 2018.

Last month, Magna International Inc. (MG.TO,MGA) and Veoneer (VNE) entered into a merger agreement under which Magna will acquire Veoneer. Pursuant to the deal, Magna will acquire all of the issued and outstanding shares of Veoneer for $31.25 per share in cash, representing an equity value of $3.8 billion, and an enterprise value of $3.3 billion.

Qualcomm noted that the transaction provides an 18.4% premium to the $31.25 per share for Veoneer offered by Magna. Qualcomm said it is prepared to immediately commence a focused diligence process. The company believes its offer delivers superior value and deal certainty to Veoneer stockholders.

Cristiano Amon, CEO of Qualcomm, said: "Our interest in Veoneer is driven by Arriver, and while we plan to explore a divestment of the non-Arriver assets to parties who are better positioned to grow these strong and stable businesses, neither the separation nor sale of the non-Arriver assets is a condition of our proposal."

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