Qualcomm Technologies has entered the bidding war for Swedish automotive technology company Veoneer. Following a $3.8 billion bid by Magna International to acquire Veoneer, Qualcomm announced Thursday that it's willing to pay $4.6 billion, or $37 per share, to buy Veoneer to bolster its growth and diversification strategy.
Qualcomm said it continues to see traction in its automotive segment, with "a revenue-design win pipeline of approximately $10 billion". In a letter to Veoneer's board of directors, Qualcomm said that together, the companies could gain a foothold in the Advanced Driver Assistance Systems (ADAS) market.
"As the automotive industry continues to transform, it is becoming increasingly important for automakers to have a partner who develops horizontal platforms that drive innovation and enable competition," said Cristiano Amon, Qualcomm CEO. "The proposed acquisition will bring together our industry-leading automotive solutions with Veoneer's assisted driving assets to deliver a competitive and open ADAS platform to automakers and Tier 1 suppliers at scale."
Qualcomm's strategy for the automotive industry lines up with its plans for IoT, artificial intelligence and compute: Using 5G and the Internet of everything to consolidate compute platforms. With Veoneer, Qualcomm is hoping to gain traction in the market for driver-assistance technology by leveraging its Snapdragon Ride Platform and existing traction with automotive customers alongside Veoneer's Arrive platform.
Veoneer develops and manufactures software, hardware and systems for advanced driving assistance systems and automated driving. Its core technologies include vision systems, radar, lidar, thermal sensing, electronic controls, and human-machine interface.