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Qualcomm Stock Price Declines Following Deal to Acquire Veoneer for $4.5bn

Updated: 4 Oct 2021

On Monday, it was revealed that Qualcomm (NASDAQ: QCOM) and SSW Partners have agreed on a deal to acquire Swedish automotive technology group Veoneer (NYSE: VNE).

Veoneer revealed that the companies would pay $37.00 per share in an all-cash transaction, representing a total value of $4.5 billion.

 In addition, Veoneer said it has terminated its prior acquisition agreement with Magna International. Magna said Veoneer would pay a termination fee of $110 million.

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At closing, SSW Partners will acquire all of the outstanding capital stock of Veoneer. Shortly after, it will sell the Arriver business to Qualcomm and retain Veoneer's Tier-1 supplier businesses. 

In August, Qualcomm made a bid to buy Veoneer at an over 18% premium to Magna's, which Veoneer had already accepted. 

“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,” said 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,” added Amon.

Qualcomm shares are down over 1.2% on Monday at $127.04. Veoneer shares have climbed 4.25% at $36.02.

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