American semiconductor giant Qualcomm has reached an agreement to acquire British chip designer Alphawave IP Group for approximately $2.4 billion in a deal.
The deal will see yet another UK tech stock leave London’s markets.
The cash offer of 183p represents a premium of 96% above the closing price of 94 pence 31st March 2025 – the closing price the may before an initial offer was made. There are a number of offers on the table for investors; a cash offer and two involving Qualcomm shares.
Alphawave shares were 22% higher at 183p at the time of writing.
“Qualcomm’s acquisition of Alphawave represents a significant milestone for us and an opportunity for our business to join forces with a respected industry leader and drive value to our customers,” said Tony Pialis, President and Chief Executive Officer of Alphawave.
“By combining our resources and expertise, we will be well-positioned to expand our product offerings, reach a broader customer base, and enhance our technological capabilities. Together, we will unlock new opportunities for growth, drive innovation, and create a leading player in AI compute and connectivity solutions. For our shareholders, the Alphawave Board is pleased that Qualcomm’s offer provides an opportunity to realise compelling value for their shares.”
While the deal provides a substantial uplift on Alphawave’s share at the beginning of the year, it is well below the group’s 2021 highs when shares traded above 450p.
Alphawave’s revenue has nearly tripled over this period.
Qualcomm’s takeover of the group is the latest demonstration of London’s equity markets’ inability to price technology shares properly.