Qualcomm acquires British chip designer Alphawave for $2.4bn
U.S. chip giant Qualcomm is acquiring British chip design company Alphawave for $2.4 billion. The deal is expected close in the first quarter of 2026.
Alphawave is known for high-speed connectivity technology used in data centres and AI applications, among others. According to Qualcomm, the acquisition is strategically important. The company wants to broaden its offerings and further strengthen its position in emerging markets such as artificial intelligence.
This acquisition is another setback for the London Stock Exchange that has been struggling to retain large technology companies. Increasingly, they are opting for the US stock market because of better valuations and more liquidity.
For example, British fintech company Wise recently announced its intention to move its main listing to the US. Just before that, Deliveroo was acquired by US rival DoorDash for £2.9 billion. And in 2023, cyber security company Darktrace also agreed to a US acquisition worth $5.3 billion.
Adding to that, this trend is not limited to the technology sector. Other major British companies, such as rental company Ashtead and building materials supplier CRH, already chose to list in the US. In addition, drug maker Indivior plans to delist from London entirely. Metal investment company Cobalt Holdings even abandoned a planned London IPO, which could have raised some $230 million.
Alphawave’s initial public offering in 2021 was difficult. Since then, the share price mostly stayed below the initial price of 410 pence. Yet CEO Tony Pialis actually sees the acquisition as an opportunity. According to him, it will allow Alphawave to improve its products, reach a wider customer base and accelerate the development of its technology.
Qualcomm CEO Cristiano Amon emphasized that Alphawave’s expertise in high-speed, wired connectivity is a strong complement to Qualcomm’s energy-efficient processing chips.
Finally, the deal also provides for a share swap. Alphawave shareholders will receive 0.01662 of a new Qualcomm share for every Alphawave share they own.
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