Qualcomm Agrees $2.4bn Deal to Buy UK Chip Designer Alphawave
In a significant development in the tech industry, US semiconductor giant Qualcomm has agreed a $2.4bn deal to acquire UK-based chip designer Alphawave, marking the latest departure of a tech company from the London market. According to a report by the Financial Times, the deal, which was announced on Monday, will see Qualcomm’s cash offer of 183p per Alphawave share, representing a 96 per cent premium to the closing price on March 31, the last trading day before Qualcomm announced its bid.
The deal values Alphawave at $2.4bn, less than half the valuation at which it went public just over four years ago. Alphawave’s shares jumped 22 per cent in early trading on Monday to 182p. The acquisition is set to advance Qualcomm’s ambitions in artificial intelligence by expanding its intellectual property portfolio in data centre and 5G networking, at a time when big tech companies are spending hundreds of billions of dollars on AI infrastructure.
As noted by the Financial Times, this deal comes less than a week after UK fintech Wise said it would switch its primary listing to New York from London, where it went public in 2021. The move is seen as a significant blow to the London market, which has struggled to retain its tech listings in recent years. The FT reported that Alphawave’s directors would unanimously recommend that shareholders vote in favour of the deal, with Chief Executive Tony Pialis stating that it would leave the UK company "well-positioned to expand our product offerings, reach a broader customer base and enhance our technological capabilities".
Qualcomm’s Chief Executive Cristiano Amon said that the two companies "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 centre infrastructure". The deal is expected to complete during the first calendar quarter of 2026, with Alphawave shareholders having the option to accept the offer in cash or Qualcomm stock.
Alphawave, which licenses chip designs for high-speed connectivity, was founded in Canada and listed in London in 2021, the same year as food delivery group Deliveroo and cyber security company Darktrace. At the time of its IPO in May 2021, Toronto-based Alphawave sold £856mn worth of shares at 410p to value the group at £3.1bn. However, Qualcomm’s offer is for less than half that figure at 183p per share.
The acquisition is set to be a significant boost to Qualcomm’s AI capabilities, with the company’s technology used in data centres, 5G infrastructure, and autonomous vehicles. As reported by the Financial Times, Qualcomm generates most of its revenue from mobile chips and related royalties, and reported strong growth in April for the first quarter of the year. The company has also taken steps to diversify its revenue streams, following a hit in March when Apple launched its first iPhone containing its own in-house modem, replacing a part that Qualcomm had historically supplied.
According to the Financial Times, Alphawave, which was heavily shorted before Qualcomm’s interest was revealed, said in April that it was unable to provide guidance for the year due to uncertainty over US President Donald Trump’s tariffs and warned that the "timing of customer programmes is currently uncertain". The deal marks a significant exit for Alphawave, which is likely to delist by the time Qualcomm completes its takeover. The news was first reported by the Financial Times, a leading provider of business and financial news.
The FT also reported that by the time Qualcomm completes its takeover, all three companies are likely to have delisted, after Deliveroo agreed to sell to US rival DoorDash this year and Darktrace was bought by private equity group Thoma Bravo last year for $5.3bn.
