Qualcomm is looking to buy auto parts maker Veoneer for $ 4.6 billion

Qualcomm revenue in the first quarter of 2021 increased by 52% compared to the same period last year

Qualcomm recently announced that it had offered $ 4.6 billion to Swedish auto parts maker Veoneer. Qualcomm’s proposed figure is 18.4% higher than the Canadian $ 3.8 billion figure of Magna; An offer previously approved by the Veoneer board.

According to reports ReutersVeoneer’s board has announced that it is considering Qualcomm’s offer, taking into account its legal obligations under the agreement with Magna. Magna has not yet reacted to the news.

Demand for advanced driver assistance systems, known as ADAS, has increased in the market. These systems provide the user with a variety of capabilities from collision alerts to car park assistance. Some of these systems receive their information from cameras and radars and then interpret the situation.

In addition to supplying parts for the handset market, Qualcomm also supplies parts to automakers, and last year began developing its own ADAS system called Snapdragon Ride. The company recently partnered with Veoneer to develop software and a chip platform for a driver assistance system called Arriver.

“With the developments in the automotive industry, the importance of having a partner in the development of horizontal platforms with innovative capabilities and competitiveness has become even more important,” said Cristiano Amon, Qualcomm CEO. Although we are still years away from learning about self-driving cars, driver assistance systems have found their way into many new cars over the years.

“If Qualcomm succeeds in attracting Veoneer shareholders, the company’s car business will quickly move beyond its current focus on entertainment-information systems, telematics and equipment supply,” said Daniel Newman, an analyst at Futurum Research. “Provide ADAS solutions and more capabilities.”

Like Qualcomm, Magna wants to buy Veoneer to compete with companies such as Aptiv and Bosch and gain more market share.

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