Qualcomm Inc. has made a formal bid to buy automotive technology company Veoneer Inc. for more than $4 billion, beating a previous offer from Magna International Inc., according to people familiar with the matter.
The U.S. semiconductor company has formalized its offer of $37 a share, the people said, asking not to be identified discussing confidential information. Qualcomm is interested in Veoneer’s Arriver software unit, which helps cars perceive and make driving decisions, and would likely later divest the non-Arriver assets to private equity firms or other automotive companies, the people said.
Representatives for Magna, Veoneer and Qualcomm declined to comment.
Crash-avoidance and hands-free driving technologies have become a hotly contested battleground as automakers seek to boost prices and get the edge on rivals. Both global suppliers and chipmakers are positioning for growth in the market for advanced safety features.