American company Qualcomm has struck a deal to buy chip developer Alphawave for $2.4 billion, in the latest move of tech companies leaving the London stock market. This is reported by UNN with reference to The Financial Times.
Details
Qualcomm offered 183 pence per Alphawave share - 96% higher than the closing price on March 31, before the day the deal was announced. As a result, Alphawave is valued at $2.4 billion, less than half of its value during its IPO (Initial Public Offering - the company's initial public offering on the stock exchange - ed.) in 2021, when the company was placed at 410 pence per share, reaching a valuation of £3.1 billion.
Alphawave shares jumped 22% in early trading on Monday, reaching 182 pence.
Qualcomm plans to use the deal to strengthen its position in artificial intelligence and expand its intellectual property portfolio in data processing and 5G networks.
The two companies share a goal of creating advanced technological solutions and providing next-level connected computing performance across a wide range of fast-growing industries, including data center infrastructure.
Alphawave also supported the deal.
This will leave the British company in a favourable position to expand our product range, reach a wider customer base and improve our technological capabilities.
The transaction is expected to close in the first calendar quarter of 2026. Shareholders will be able to choose between a cash payout or an exchange for Qualcomm shares.
Additionally
Alphawave, which specializes in licensing chips for high-speed connectivity, was founded in Canada and listed on the London Stock Exchange in 2021. Deliveroo and cybersecurity company Darktrace were also listed that year.
Currently, all three companies are effectively leaving the London market: Deliveroo has agreed to sell DoorDash, and Darktrace was acquired last year by private investment firm Thoma Bravo for $5.3 billion.
In April, Alphawave warned of uncertainty about the implementation of client programs amid the tariff policy of former US President Donald Trump. The company said it could not provide a forecast for the year, adding: "The timing of customer programme implementations is currently uncertain."
In addition to data centers, Alphawave's technologies are also used in 5G infrastructure and autonomous transport.
Let us remind you
Qualcomm, which earns mostly from mobile chips and royalties, reported growth for the first quarter of the year in April. At the same time, the company said it does not expect any serious impact from possible tariffs. In March, the company suffered a blow when Apple unveiled the first iPhone with its own modem, replacing components previously supplied by Qualcomm.