Qualcomm, SSW to Buy Veoneer for $4.5 Billion

Qualcomm, SSW to Buy Veoneer for .5 Billion


Chip maker Qualcomm teamed up with investment firm SSW Partners on the deal.



Photo:

Bing Guan/Bloomberg News

Qualcomm Inc.

QCOM -1.55%

said it has teamed with investment firm SSW Partners LP on a $4.5 billion deal to buy

Veoneer Inc.,

VNE 4.30%

snatching the Swedish automotive-technology company from Canada’s

Magna International Inc.

MGA 0.98%

San Diego chip maker Qualcomm on Monday said SSW will acquire Veoneer for $37 a share and then sell Veoneer’s Arriver sensor perception and drive policy software platform to Qualcomm.

A representative for Qualcomm and SSW said the amount Qualcomm is paying for Arriver isn’t being disclosed at this time.

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 include 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.

Magna, an Aurora, Ontario, auto-parts company, said it waived its right to make a matching offer, citing a “disciplined approach to valuation as we pursue strategic acquisitions.”

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.

SSW said the Veoneer investment marks its first capital commitment since its founding at the beginning of the year. The firm said it plans to seek long-term strategic partners for Veoneer’s businesses in restraint-control systems and active safety.

Qualcomm and SSW said they expect the Veoneer deal to close next year.

Write to Colin Kellaher at [email protected]

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Rachel Meadows

Rachel Meadows

Trending topics news writer who enjoys cooking, walking her dog and travel.

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