Qualcomm abandons $350 million Autotalks acquisition amid regulatory roadblocks
Qualcomm abandons $350 million Autotalks acquisition amid regulatory roadblocks
The cancellation was prompted by ongoing regulatory inspections of the transaction, with the European Commission and the US Federal Trade Commission looking into the deal
The American chip giant Qualcomm has canceled its agreement to purchase the Israeli chip company Autotalks. The purchase amount was not revealed when the deal was initially announced in May 2023, but it was estimated at about $350 million.
The cancellation was prompted by ongoing regulatory inspections of the transaction, with the EU claiming last August that the deal required antitrust approval. The European Commission cited the importance of the deal to original equipment manufacturers and others who need access to vehicle-to-everything (V2X) semiconductors. The U.S. Federal Trade Commission (FTC) was also reportedly looking into the transaction.
Autotalks is entitled to compensation as per the agreement, but the exact amount remains undisclosed.
"Qualcomm has terminated the transaction to acquire Autotalks due to lack of regulatory approvals in a timely manner," Qualcomm said in a statement. "Automotive is a very important vertical for Qualcomm and we remain fully committed to our product roadmap, our customers and our partners."
Autotalks, founded in 2009, is a fabless semiconductor company focused on vehicle-to-everything (V2X) communications. The company provides automotive-qualified dual-mode global V2X solutions compatible with multiple V2X standards that are designed to reduce collisions and improve mobility.
Autotalks commented: "We thank Qualcomm for their intention to acquire Autotalks. We found a fellow believer in the potential of V2X to save thousands of lives every year. We are disappointed that the transaction couldn’t be completed."
"Over the last 15 years, Autotalks has been the V2X market innovator. Recently, we have launched our 3rd generation chipset, which is the only chip supporting 5G-V2X communication, even concurrently with the legacy DSRC communication. The new chipset paves the future path for V2X by uniquely enabling Automated Braking based on V2X and advanced V2X Day2 applications. As a result of these capabilities, Autotalks has been chosen for 10 Automotive and 1 eBike mass-market platforms."
"Looking forward, our entire team continues to develop our products and support our customers. In parallel, we are exploring alternative paths for the continued success of our company, technology and team."
