BREAKINGVIEWS-Qualcomm bypasses logic gate with $2 bln UK deal

By Karen Kwok

LONDON, June 9 (Reuters Breakingviews) - The $162 bln semiconductor giant’s Alphawave acquisition looks overpriced. But it gives CEO Cristiano Amon access to technology that’s core to the plumbing of fast-growing AI data centres. Overpaying in the short term arguably makes sense to help unlock a massive market.

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CONTEXT NEWS

U.S. chipmaker Qualcomm on June 9 said it had agreed to acquire British semiconductor company Alphawave for about $2.4 billion.

Alphawave shareholders have the option of receiving $2.48 per share in cash, a nearly 96% premium to the price on March 31, which was immediately before Qualcomm disclosed its interest in the company.

The U.S. bidder has also offered two alternative offers with an equivalent paper value. The first comprises new Qualcomm shares and the second comprises new "exchangeable securities". Founders Tony Pialis, Rajeevan Mahadevan and Jonathan Rogers will take the second alternative offer.

Shares in Alphawave rose 24% to 186 pence as of 0953 GMT on June 9.