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Investing.com – Veoneer stock (NYSE:VNE) was up 25% Thursday as chipmaker Qualcomm joined Magna International in the race to acquire the auto tech firm.
Qualcomm (NASDAQ:QCOM) stock fell 1.4%, and Magna (NYSE:MGA) was 2% higher.
The maker of Snapdragon chips has offered $37 in cash for each share of Veoneer, 18% higher than Magna’s July 23 offer of $31.25.
Veoneer designs, develops and manufactures software, hardware and systems for occupant protection, advanced driving assistance systems, collaborative and automated driving.
Its sensors and software solutions are aimed at preventing traffic accidents and, when accidents are unavoidable, its restraint control systems help lessen the effects of a crash.
As cars get smart, demand for products made by companies like Veoneer is only expected to increase and hence the interest from Qualcomm and Magna.
Veoneer pegs its total addressable market at ~$18 billion by 2023 and ~$29 billion in 2026.
Due to dependence on premium brands, Veoneer is over-represented with OEMs which tend to have lower light vehicle volumes. Over the next five years Veoneer expects to increase its percentage of sales with the top 10 OEMs, based on light vehicle production.