Qualcomm, along with an investment firm SSW Partners, has agreed to purchase Veoneer, a Swedish automotive tech company in an all-cash deal worth around $4.5 billion as the company is paying $37 per share.

For this deal, the chipset maker has managed to outbid Magna International. In July this year, Veoneer had agreed to sell itself to Magna in a bid worth $31.25 per share, but Qualcomm submitted its bid for $800 million, or 18% more.

Magna, having a market capitalization of $25.3 billion compared to Qualcomm’s $164.8 billion, did not even submit a counterbid. Veoneer will pay Magna a “breakup fee” of $110 million. The deal is expected to close next year.

SSW Partners said that it would sell Veoneer’s Arriver tech, which is an advanced driver assistance system stack that includes sensors and software, to Qualcomm and retain the Swedish company’s other Tier 1 supplier businesses.

This isn’t the first major acquisition for Qualcomm this year. In January, Qualcomm agreed to acquire high-performance computing startup Nuvia for $1.4 billion to establish itself in the markets beyond telecoms.

Qualcomm, which is known for making chipsets for smartphones, is seeking new avenues for profit beyond phone-related chips. With the advancement in automotive technology and rise in demand, this seems like a primary target for the company.

It already supplies chips that power in-car communications and infotainment systems and is now aiming to extend its reach in driver-assistance technology. Last year, Qualcomm had partnered with Veoneer to form Arriver and began developing driving technology targeted to hit the road in 2024.

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