Tech supplier Veoneer on Monday said it reached a definitive agreement to be sold to Qualcomm Inc. and SSW Partners, a New York-based investment partnership, and officially terminated its previous merger agreement with Magna International Inc.
Veoneer said in a statement that Qualcomm, a semiconductor and wireless tech company, and SSW Partners would buy it for $37 per share in an all-cash transaction, representing a total equity value for Veoneer of $4.5 billion.
Veoneer said SSW Partners will initially acquire Veoneer as a whole and will then sell its Arriver software unit to Qualcomm shortly after the deal closes. SSW Partners will retain the rest of Veoneer's Tier 1 supplier business, including its restraint control systems and active safety units, and “will lead the process of finding strong, long-term strategic partners” for them, the companies said in a news release.
“Qualcomm is the natural owner of Arriver,” Qualcomm CEO Cristiano Amon said in a statement. “By integrating these assets, Qualcomm accelerates its ability to deliver a leading and horizontal [advanced driver assistance systems] solution as part of its digital chassis platform.”
Qualcomm’s offer is an 18 percent premium to Magna's $31.25-a-share bid. Qualcomm said its cash offer won’t require stockholder approval.
Shares in Veoneer closed Monday's trading in New York up 4.8 percent to $36.20.