Qualcomm Offers $4.6 Billion for Veoneer

Qualcomm made a $4.6 billion cash bid for automotive technology developer Veoneer. The US chipmaker thus enters into a race with advanced driving assistance systems (ADAS) developer Magna International, which is also seeking control of Veoneer.

The San Diego company’s offer is 18 percent higher than an offer Magna made last month which was accepted Veoneer’s board. Qualcomm’s board approved its bid, which does not require shareholder consent. Veoneer makes ADAS hardware and software, a business Qualcomm is keen to develop. The chipmaker said it had a revenue-design win pipeline of approximately $10 billion in the automotive industry.

In a letter to Veoneer’s board, Qualcomm CEO Cristiano Amon explained it wanted to combine the Swedish company’s computer vision and drive policy technology its Snapdragon Ride platform. Amon added Qualcomm does not foresee any regulatory hurdles, arguing Magna’s move could raise potential regulatory issues since the parties have overlap in active safety.

Technology for self-driving cars has been a consistent focus area for Qualcomm, which competes with Intel’s Mobileye in the space. Earlier this year, Qualcomm detailed an overhaul of its connected car technology, planning to introduce the fourth-generation of its Snapdragon Automotive Cockpit Platform in 2022.