Published on •Updated
Shares in chip designer Alphawave rose sharply on Monday after the British-Canadian firm agreed to be acquired by US rival Qualcomm for around $2.4bn (€2.1bn) in cash.
As of around 9.45am London time, Alphawave’s stock had risen around 23% in daily trading on the LSE.
Qualcomm’s offer values each share at 183p, a 96% premium on the closing price seen on 31 March, the final day before Qualcomm and Alphawave announced they were holding discussions.
The $2.4bn valuation is still half of the total worth attributed to Alphawave when it launched an IPO in 2021.
At its stock market debut, Alphawave shares were worth 410p each and the group was valued at £3.1bn (€2.7bn), although the firm has generally traded well below this level since its IPO.
The deal is expected to close in the first three months of 2026, subject to shareholder and regulatory approval.
Alphawave designs semiconductor technology for data centres and AI applications, thus providing Qualcomm with an opportunity to diversify away from smartphone components.
“Qualcomm’s acquisition of Alphawave Semi represents a significant milestone for us and an opportunity for our business to join forces with a respected industry leader and drive value to our customers,” said Tony Pialis, CEO of Alphawave Semi.
“By combining our resources and expertise, we will be well-positioned to expand our product offerings, reach a broader customer base, and enhance our technological capabilities,” he added.
Cristiano Amon, CEO of Qualcomm, commented on the deal: “The combined teams share the goal of building advanced technology solutions and enabling next-level connected computing performance across a wide array of high growth areas, including data center infrastructure.”
Alphawave said its directors would unanimously advise shareholders to vote in favour of the takeover.
For the deal to go ahead, it would require a green light from investors representing 75% of shares.
The takeover raises concerns about the attractiveness of listing in the UK, particularly after other high-profile departures from the LSE.
Food-delivery service Deliveroo and cybersecurity and AI firm Darktrace have both agreed to be acquired by US firms. The fintech Wise also announced last week that it would be moving its primary listing to the US.
