STOCKHOLM — Swedish automotive technology group Veoneer said on Monday chipmaker Qualcomm Inc and SSW Partners, a New York-based investment partnership, had reached a definite agreement to buy it.
Veoneer said in a statement the two would buy it for $37 per share in an all-cash transaction, representing a total equity value for Veoneer of $4.5 billion.
Shares in Veoneer 3.7 percent to $35.84 in early trading in New York.
Magna International Inc., which had a previous offer to buy Veoneer accepted by the Swedish company, on Monday confirmed the news. It said Veoneer’s board determined that the previously announced proposal by Qualcomm to acquire Veoneer for $37 per share is a superior proposal under the terms of the previously announced merger agreement between Magna and Veoneer.
As a result, Magna has waived the four-day matching period to make a counterproposal. Accordingly, Veoneer has terminated its merger agreement with Magna and entered into the merger agreement with Qualcomm.
Veoneer will now pay Magna a termination fee of U.S. $110 million.
“Magna’s waiver decision underscores our disciplined approach to valuation as we pursue strategic acquisitions and continue to act in the best interests of our shareholders,” Magna CEO Swamy Kotagiri said in a statement. “We remain confident in our long-term value creation potential and our path forward as one of the world’s largest automotive suppliers and key enabler to meet future mobility needs.”