Qualcomm and SSW Partners Agree on a Final Transaction to Obtain Veoneer

Auto Tech Outlook | Monday, October 25, 2021

Qualcomm and SSW partners reach the final deal on the Veoneer purchase. 

FREMONT, CA: “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,” states Antonio Weiss and Josh Steiner of SSW Partners. Qualcomm Incorporated and SSW Partners, a New York-based investment partnership, have reached an agreement to procure Veoneer, Inc. for $37.00 per share in an all-cash transaction, valuing Veoneer’s equity at $4.5 billion. Veoneer has canceled its prior acquisition agreement with Magna International Inc. and canceled the extraordinary meeting previously set for October 19, 2021, to ratify the agreement.

The cash purchase price of $37.00 per share reflects 18 percent premium over Veoneer's previous deal with Magna and an 86 percent premium over the unaffected share price before the Magna announcement. Qualcomm and Veoneer's boards of directors have approved the transaction, subject to regulatory approvals, including those required under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 in the United States certain European foreign direct investment approvals, Veoneer stockholder approval, and other customary conditions. It is anticipated that the acquisition will be finalized in 2022.

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SSW Partners will acquire all of Veoneer's outstanding capital shares, shortly thereafter selling the Arriver business to Qualcomm while retaining Veoneer's Tier-1 supplier businesses. SSW Partners will be responsible for identifying long-term strategic partners. This transaction structure enables Veoneer's enterprises to thrive over the long term.

“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,” says Cristiano Amon, President and CEO of Qualcomm Incorporated. "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.”

Qualcomm feels that having already established a successful relationship with Arriver, the Arriver business will prosper within Qualcomm. Qualcomm will include Arriver’s Computer Vision, Drive Policy, and Driver Assistance capabilities into its market-leading Snapdragon Ride™ Advanced Driver Assistance Systems (ADAS) solution following the closure of the transactions. This strengthens Qualcomm’s ability to deploy an open and competitive ADAS platform on a large scale to automakers and Tier-1s.

SSW Partners will collaborate with Veoneer's management to ensure the company's current business plan is pursued and identify strong, long-term strategic partners for the Restraint Control Systems (RCS) and Active Safety businesses. SSW Partners' founders have extensive worldwide investing, operating, and transaction experience and a track record of success partnering with management teams across several locations and industries. They are seasoned investors and consultants in Europe and the automotive sector and will prioritize ensuring the seamless continuation of company operations for the RCS and Active Safety businesses' customers and staff. SSW Partners' investment in Veoneer will be the partnership's first capital commitment since its formation at the start of the year.

“This transaction creates superior value for our shareholders,” says Jan Carlson, Chairman, President, and CEO of Veoneer. “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.”

Mr. Carlson continues, “Our board and management team remain focused on delivering on our objectives, driving continuous improvements across the organization 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.”

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