Veoneer Weighs Qualcomm's Acquisition Proposal Against Magna Agreement

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STOCKHOLM, Aug. 10, 2021 — Automotive technology company Veoneer will enter discussions with Qualcomm, which has proposed to acquire the company for $4.6 billion, or $37 a share. Veoneer this week announced that its board of directors had determined that Qualcomm’s proposal would be “reasonably expected to result in a Superior Proposal as defined under the terms of Veoneer’s merger agreement with Magna.”

Veoneer, in July, entered into an agreement with mobility technology company Magna International where Magna would acquire Veoneer for $3.8 billion. That agreement remains “in full force and effect,” a press release from Veoneer stated, and under the agreement, Veoneer has the ability to terminate the agreement prior to stockholder approval to enter a transaction based on a competing proposal.

Should Veoneer decide to accept Qualcomm’s proposal, which it acknowledged on Aug. 5,  it would need to pay Magna a termination fee of $110 million.

Veoneer develops computer vision and driver assistance technology.

Published: August 2021
An acronym of light detection and ranging, describing systems that use a light beam in place of conventional microwave beams for atmospheric monitoring, tracking and detection functions. Ladar, an acronym of laser detection and ranging, uses laser light for detection of speed, altitude, direction and range; it is often called laser radar.
1. A localized fracture at the end of a cleaved optical fiber or on a glass surface. 2. An integrated circuit.
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