Qualcomm Incorporated [NASDAQ: QCOM] disclosed that it has decided to purchase Veoneer, Inc. [NYSE: VNE]. In this regard, QCOM has presented an offer to purchase Veoneer for $37 per share, in an all-cash transaction. The firm revealed that the Board of Directors of QCOM has provided the authorization for the offer.
After the authorization, QCOM doesn’t need the authorization of the shareholders of VNE and also doesn’t bound to any financing requirements. As per QCOM, this proposed offer is in line with the growth strategy of the firm. This offer demonstrated the struggle of QCOM to bring sophisticated technologies to the automotive industry.
In addition to this, Qualcomm is seeing traction in automotive, with a revenue-design win pipeline of roughly $10 billion. Moreover, the suggested purchase will unite QCOM’s top automotive solutions with Veoneer’s aided driving assets. It will offer a competitive and open ADAS platform to automakers and Tier 1 suppliers at scale.
Furthermore, Qualcomm has decided to use the existing cash to finance this deal. Qualcomm is ready to instantly begin a focused persistence process, which the firm expects to be able to execute in short order. Qualcomm considers that its proposition provides superior value and deal assurance to Veoneer stockholders.