, Veoneer has terminated its prior acquisition agreement with Magna International of $3.8 billion (Rs 28,123 crore) which was announced in July 2021.
04 Oct 2021 | 3230 Views | By Autocar Pro News Desk
Qualcomm Inc and SSW Partners, a New York-based investment partnership have reached a definitive agreement to acquire safety technology major Veoneer for $4.5 billion (Rs 33,304 crore). On the other hand, Veoneer has terminated its prior acquisition agreement with Magna International of $3.8 billion (Rs 28,123 crore) which was announced in ...
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Qualcomm Inc and SSW Partners, a New York-based investment partnership have reached a definitive agreement to acquire safety technology major Veoneer for $4.5 billion (Rs 33,304 crore). On the other hand, Veoneer has terminated its prior acquisition agreement with Magna International of $3.8 billion (Rs 28,123 crore) which was announced in July 2021.
At closing, SSW Partners will acquire all of the outstanding capital stock of Veoneer, shortly after which it will sell the Arriver business to Qualcomm and retain Veoneer’s Tier-1 supplier businesses. SSW Partners will lead the process of finding strong, long-term strategic partners. This the company says will facilitate the long-term success of all Veoneer’s businesses.
Having already demonstrated a successful partnership with Arriver, Qualcomm believes that the Arriver business will thrive. Upon close of the transactions, Qualcomm will incorporate Arriver’s Computer Vision, Drive Policy and Driver Assistance assets into its leading Snapdragon Ride Advanced Driver Assistance Systems (ADAS) solution. This will augment Qualcomm’s ability to deliver an open and competitive ADAS platform for automakers and Tier-1s at scale.
In addition, SSW Partners will work with Veoneer’s management to ensure the pursuit of Veoneer’s existing business plan and to identify strong, long-term strategic partners for the Restraint Control Systems (RCS) and Active Safety businesses.
Cristiano Amon, president and CEO of Qualcomm said: “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. 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.”
Jan Carlson, chairman, president and CEO, Veoneer said: “This transaction creates superior value for our shareholders. It also provides attractive opportunities to our Arriver team at Qualcomm and allows our other businesses to find long-term industrial partners where they can continue to develop. Our board and management team remain focused on delivering on our objectives, driving continuous improvements across the organisation and launching new technologies and programs for our customers. Despite significant industry-wide challenges, our team has done an outstanding job positioning Veoneer for success, building on our leading ecosystem of partners, cutting-edge technology and a strong order book.”
Antonio Weiss and Josh Steiner of SSW Partners said: “We are excited to partner with Qualcomm to acquire Veoneer. While Qualcomm focuses on the Arriver business, we will focus on finding strong, long-term strategic homes for the rest of Veoneer’s businesses – we are committed to ensuring that Veoneer’s employees prosper, the businesses continue to innovate and grow and customers continue to have uninterrupted access to the outstanding service and quality for which Veoneer is known. We have high regard for Veoneer’s management team and look forward to partnering with them to ensure a successful outcome for all stakeholders.”