By Dhirendra Tripathi

Investing.com – Veoneer Stock (NYSE:) rose more than 4 percent Monday, after the acceptance of the offer by Qualcomm (NASDAQ;) and SSW for the purchase.

Qualcomm-SSW was the winner Magna International Veoneer had been offered first by the (NYSE:)

The maker of Snapdragon chips had offered $37 in cash for each share of Veoneer, 18% higher than Magna’s July 23 offer of $31.25.

Qualcomm and SSW’s offer values Veoneer’s equity at $4.5 billion. It is expected that the transaction will close in 2013. Qualcomm stock fell 1.6%.

SSW Partners, as per the deal structure will buy all Veoneer’s outstanding capital stock. Qualcomm will shortly follow and Veoneer’s Tier-1 supplier businesses will be sold to Qualcomm.

Veoneer develops, manufactures, and markets software and hardware for occupant safety, advanced driver assistance systems, and collaborative and automated driving.

The sensors and software designed by it are intended to prevent traffic accidents. When accidents do occur, the restraint control system helps lessen the damage.

Qualcomm will include Arriver’s computer vision, driver policy, and driver assistance assets in its Snapdragon Ride Advanced Driver Assistance Systems Solution. Qualcomm will be able to offer a competitive ADAS platform that is open and accessible for both automakers and tier-1s, thereby increasing its ability to provide an open and competive ADAS platform.

Qualcomm stated in a note that Veoneer had terminated the Magna acquisition agreement and that it has cancelled its Oct 19 special meeting, which was originally scheduled to approve Magna’s agreement.

Veoneer products will continue to be in demand as cars become smarter. This gives Qualcomm the opportunity to expand beyond just their core business, which is providing mobile chips.  

Veoneer estimates that its total market is $18 Billion by 2023, and $29 Billion in 2026.

Veoneer’s dependence on premium brands means that it is often overrepresented by OEMs with lower volumes of light vehicles. Veoneer plans to grow its share of light-vehicle production OEM sales over the next five year.