Veoneer Jumps as Qualcomm Outbids Magna to Buy Sensor, Software Maker

By Dhirendra Tripathi

Investing.com – Veoneer inventory (NYSE:) climbed greater than 4% Monday after it accepted the joint supply made by Qualcomm (NASDAQ:) and SSW to purchase the corporate.

The Qualcomm-SSW mixture outbid Magna Worldwide (NYSE:) which had first made the supply for Veoneer.

The maker of Snapdragon chips had supplied $37 in money for every share of Veoneer, 18% greater than Magna’s July 23 supply of $31.25.

Qualcomm and SSW’s supply values Veoneer’s fairness at $4.5 billion. The transaction is anticipated to shut subsequent 12 months. Qualcomm inventory fell 1.6%.

At per the deal construction, SSW Companions will purchase the entire excellent capital inventory of Veoneer, shortly after which it can promote the Arriver enterprise to Qualcomm and retain Veoneer’s tier-1 provider companies.

Veoneer designs, develops and manufactures software program, {hardware} and techniques for occupant safety, superior driving help techniques, collaborative and automatic driving.

Its sensors and software program options are aimed toward stopping visitors accidents and, when accidents are unavoidable, its restraint management techniques assist reduce the results of a crash.

Qualcomm will incorporate Arriver’s pc imaginative and prescient, drive coverage and driver help property into its main Snapdragon Experience Superior Driver Help Techniques resolution. This may improve Qualcomm’s capability to ship an open and aggressive ADAS platform for automakers and tier-1s at scale.

Veoneer has terminated its prior acquisition settlement with Magna and shelved its October 19 particular assembly that was beforehand scheduled to approve that settlement, Qualcomm mentioned in a be aware.

As vehicles get sensible, demand for merchandise made by firms like Veoneer is simply anticipated to extend, offering the likes of Qualcomm a chance to transcend their bread-and-butter enterprise of offering chips for cell and different devices.  

Veoneer pegs its complete addressable market at ~$18 billion by 2023 and ~$29 billion in 2026.

As a result of dependence on premium manufacturers, Veoneer is over-represented with OEMs which are likely to have decrease gentle automobile volumes. Over the subsequent 5 years, Veoneer expects to extend its share of gross sales with the highest 10 OEMs, based mostly on gentle automobile manufacturing.