LONDON: Qualcomm Incorporated has agreed to acquire Alphawave IP Group in a recommended cash deal worth approximately $2.4 billion, the companies announced Tuesday.
Chip stock Alphawave soars on Qualcomm takeover
Aqua Acquisition Sub LLC, an indirect wholly-owned subsidiary of Qualcomm, will acquire all issued and future ordinary shares of Alphawave under a scheme of arrangement under U.K. law. Alphawave shareholders will receive $2.48 per share in cash, equivalent to 183 pence per share based on the announcement exchange rate.
Alternative Offers to the Cash Option
Eligible Alphawave shareholders can choose one of these options instead of cash for all their shares (not part of them):
- Alternative Offer 1:
- For each Alphawave share, receive 0.01662 of a new Qualcomm share.
- This values each Alphawave share at 183 pence (as of the latest date).
- Alternative Offer 2:
- For each Alphawave share, receive:
- 0.00964 of a new Series A Qualcomm exchangeable security
- 0.00698 of a new Series B Qualcomm exchangeable security
- This is worth the same as Alternative Offer 1, assuming the securities are later exchanged for Qualcomm shares.
- For each Alphawave share, receive:
Key Notes:
- The new Qualcomm shares (from Alternative Offer 1) will be listed on NASDAQ.
- The exchangeable securities (from Alternative Offer 2) will not be listed and have some restrictions.
- If shareholders don’t choose an alternative, they’ll get cash instead.
- No dividends or other payments from Alphawave are expected after this announcement.
What the CEOs Say:
Tony Pialis (Alphawave CEO):
“This deal is a big step for us. Joining Qualcomm—a top industry leader—will help us grow, innovate, and deliver better tech solutions. Shareholders get great value for their shares.”
Cristiano Amon (Qualcomm CEO):
“Alphawave’s high-speed connectivity tech fits well with our efficient processors. Together, we’ll build advanced solutions for data centers and other fast-growing areas.”