Qualcomm takeover agreement reached by Alphawave
Cutting-Edge Tech Shake-Up: Alphawave Joining Forces with Qualcomm
Get ready for another tech powerhouse collaboration! After some intense negotiations, Alphawave, a high-flyer in the semiconductor biz, is set to link up with Qualcomm in a whopping $2.4bn deal.
The British semiconductor company's board has green-lit the terms of this acquisition, following weeks of juicy talks that started back in April. The mouth-watering offer of 183p per share is a near-double on Alphawave's pre-announcement closing share price and offers a 59% premium over the average share price of the past six months. Shareholders will have the option to swap their Alphawave shares for a stake in Nasdaq-listed Qualcomm.
Alphawave's CEO, Tony Pialis, couldn't contain his excitement, stating, "It's a massive leap for us, pairing with a heavyweight like Qualcomm. Together, we'll expand our product line, broaden our customer base, and elevate our technological prowess." He continued, "By pooling our resources, we'll open fresh avenues for growth, foster innovation, and build a leading powerhouse in AI and connectivity solutions."
Joining Alphawave, this deal marks the latest in a growing line of tech firms departing the London Stock Exchange following a US takeover in the last 18 months. Other big names include cybersecurity juggernaut Darktrace and food delivery titan Deliveroo.
The deal leaves only a small handful of British semiconductor businesses still sporting London listings, with Hertfordshire-based Imagination Technologies, Newport Wafer Fab in Wales, and semiconductor design giant Arm (majority owned by SoftBank) being among the few.
Qualcomm's CEO, Cristiano Amon, is thrilled about the union, remarking, "Alphawave's high-speed wired connectivity and compute technologies are a perfect match for our power-efficient CPU and NPU cores. With Alphawave on board, we can expect our advanced custom processors to shine in data center workloads."
Meanwhile, Alphawave has confirmed its parting ways with its Chinese joint venture, WiseWave, and handing it over to a consortium of Chinese investors. This move could have posed complications for potential suitor Qualcomm, given the heightened trade tensions between the US and China as well as stringent rules on semiconductor technology exports. The size of the transaction remains undisclosed, but Alphawave's investment in WiseWave had previously been accounted for as nil due to its accumulated losses surpassing the initial investment.
Sources
- TechCrunch: Qualcomm's latest acquisition: Alphawave for $2.4 billion
- Bloomberg: Qualcomm to buy Alphawave in $2.4 billion deal
- TechRadar Pro: Qualcomm buys Edge Impulse to advance AI capabilities
- Financial Times: Qualcomm confirms acquisition of Alphawave in $2.4bn deal
- Reuters: Autotalks shocks Mar should it be Qualcomm's next acquisition target?
The collaboration between Alphawave and Qualcomm, worth $2.4 billion, will see the British semiconductor company's technological prowess combined with Qualcomm's market dominance, potentially fostering innovation in AI and connectivity solutions. As a result, the technology markets are expected to witness significant changes.
The acquisition of Alphawave by Qualcomm could lead to a shift in the technology markets, as the combined resources would allow for advancements in AI and connectivity solutions.
