Qualcomm, SSW Partners purchase Veoneer for $4.5 billion

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Qualcomm and SSW Partners have agreed to buy Swedish automotive technology group Veoneer, for $4.5 billion, according to a statement by Veoneer. The company’s technology in creating advanced driver assistance systems made it an attractive target.

Qualcomm offered to buy Veoneer in August, at an 18.4% premium, in response to a July Magna bid of $3.8 billion that had already been accepted by the Veoneer board. Qualcomm presented its bid after signing a collaboration deal in January with Veoneer to make a software and chip platform for driver-assistance systems dubbed Arriver.

The deal

Qualcomm and SWW Partners (a new entrant in the investment scene in New York) will purchase Veoneer for $37 per share in cash, according to a statement by the acquired company. Though unusual, the deal structure allows SSW Partners to buy all outstanding shares of Veoneer, after which it will lead a process to look for a buyer for Veoneer’s Tier-1 supplier businesses, including active safety businesses, restraint control systems, while also selling the Arriver business to Qualcomm. Veoneer said that the transaction structure facilitates the long-term success of all Veoneer endeavors.

Magna is out and Veoneer is up

Magna had a similar interest in purchasing Veoneer, in a bid to compete with ADAS makers that include Aptiv, Bosch, and Continental. Veoneer said that it had terminated its prior acquisition agreement with Magna. In a separate statement, Magna said that Veoneer would have to pay a termination fee of $110 million to Magna.

Veoneer’s shares on the Stockholm listing, rose 4.33% to trade at $35.91 at close (313.4 crowns). The company was spun off from airbag and seatbelt maker Autoliv in 2018.