Qualcomm and Alphawave announced on Monday a recommended cash offer of 183 pence per Alphawave share, valuing the deal at roughly £1.1 billion. This price represents a 96% premium over Alphawave’s closing share price on March 31, before the companies revealed takeover talks. The transaction, subject to regulatory and shareholder approval, is expected to close in Q1 2026.
Strategic Rationale
Qualcomm CEO Cristiano Amon aims to diversify beyond its core smartphone business. Alphawave produces high-speed semiconductors and connectivity chips used in data centers and AI applications, two fast-growing segments fueled by products like OpenAI’s ChatGPT. The acquisition will strengthen Qualcomm’s position in these emerging markets.
Shareholder Support and Voting
Alphawave’s board has unanimously recommended the cash offer. To complete the merger, at least 75% of votes cast by shareholders are required in favor. Alphawave reports that shareholders and directors representing about 50% of its outstanding shares have already agreed to back the transaction.
Market Reaction and Stock Performance
Following the announcement, Alphawave shares surged 23%, trading at 183.60 pence in London by 8:53 a.m. local time. The stock has climbed 117% year-to-date, though it still trades below its 410 pence IPO price from 2021.
Company Background and Recent Trends
Since its 2021 IPO, Alphawave has faced challenges breaking free from reliance on a few large customers. Geopolitical tensions between China and the US led the company to scale back operations in both markets last year. Despite these headwinds, Alphawave reported a surge in orders during Q4, driven largely by North American AI customers, according to CEO Tony Piaris.
Alternative Offer Options
In addition to the cash bid, Alphawave shareholders may choose to receive Qualcomm shares at a ratio of 0.01662 Qualcomm shares per Alphawave share. Qualcomm also proposed two types of Exchangeable Securities—Series A and Series B—at ratios of 0.00964 and 0.00698 per share, respectively. Alphawave’s directors declined to recommend these alternatives, citing an inability to conclude they were fair and reasonable given their complexity and mixed benefits.
