On Monday, US chipmaker Qualcomm announced its agreement to acquire British semiconductor firm Alphawave for approximately $2.4 billion, aiming to enhance its artificial intelligence technology.
Alphawave shareholders will receive 183 pence per share, representing a nearly 96% premium compared to the price just before Qualcomm revealed its interest in the company. The shares surged 22% in early London trading, approaching the offer price.
US companies have been actively purchasing British assets, capitalizing on a market characterized by relatively lower valuations and sluggish growth.
Alphawave specializes in designing and licensing semiconductor technology for data centers, networking, and storage, and had attracted acquisition interest from Qualcomm and SoftBank-owned chip technology provider Arm in early April due to its ‘serdes’ technology.
This technology is essential for the speed at which data is processed by chips, which is vital for AI advancement, and forms the basis for Broadcom’s and Marvell Technology’s multibillion-dollar custom chip operations.
Arm decided to withdraw after initial talks with Alphawave, as reported exclusively by Reuters in April, citing sources.
Qualcomm also proposed two alternative all-share offers to Alphawave’s shareholders after receiving several extensions from the UK’s takeover panel to submit a firm offer.
The British company stated that it views the terms of the cash offer as fair and reasonable and plans to recommend it unanimously to its shareholders.
Additionally, Alphawave finalized the sale of its stake in WiseWave, its joint venture with Chinese investment firm Wise Road Capital, to existing state shareholders on Monday.
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