RE: Redeye Takeover prediction2 Nov 2021 15:58
Charlie, not purposely, the full piece for completeness
Qualcomm finally acquired Veoneer – but only their joint ADAS project “Arriver”
After many ifs and buts, Qualcomm and private equity firm SSW partners acquired Veoneer. However, the deal
implies splitting Veoneer into two parts, where Qualcomm only acquires the part called Arriver and SSW partners
takes the Tier-1 supplier business.
Arriver is the name of the partnership project between Veoneer and Qualcomm that has been ongoing since last
year. The Arriver solution is built on Veoneer’s software for perception and driver policy and is combined with
Qualcomm’s processors and accelerators from the Snapdragon platform.
Arriver to be part of Qualcomm’s “digital chassis platform” – indicating further M&A from Qualcomm
The CEO of Qualcomm stated that “By integrating these assets, Qualcomm accelerates its ability to deliver a leading
and horizontal ADAS solution as part of its digital chassis platform”. We think this last part is interesting in two ways;
Qualcomm tries to go past the tier-1 players, and it indicates that more M&A is to be expected.
First, we think a “digital chassis platform” indicates a full digital platform that could be sold as a full package to
OEMs. We think this implies Qualcomm selling a complete solution directly to OEMs, instead of letting tier-1 players
assemble a full best-of-breed solution. This is just guesswork from our side, but it’s the only explanation that we
see.
Second, such a package would definitely need a DMS solution or a full interior-sensing solution too. This would
indicate that Qualcomm is also looking to acquire either 1) a full interior-sensing player like Smart Eye, or 2) one
DMS player and one player that covers the rest of interior sensing.
If Qualcomm acquires a DMS player, we think Seeing Machines is more likely than Smart Eye
Regarding potential M&A targets, we know that there has been some sort of collaboration between Qualcomm,
Veoneer and Seeing Machines. Even though we are pretty sure Qualcomm has worked with Smart Eye too,
Qualcomm presented the below picture during a keynote at the Reuters Automotive Summit in November 2020. The
picture presents Qualcomm’s global ecosystem, where Seeing Machines is included but Smart Eye is not. Thus, we
wonder if Seeing Machines could be the last piece of the puzzle for Qualcomm’s digital chassis platform
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