Qualcomm to Acquire UK Chip Firm Alphawave in $2.4 Billion Deal

Qualcomm has entered into an agreement to acquire Alphawave, a UK-based semiconductor firm specializing in high-speed connectivity technology for data centers and AI applications, for $2.4 billion. The deal offers Alphawave shareholders 183 pence per share, a notable premium over recent trading levels, with completion expected in Q1 2026 pending approvals.

Alphawave, which debuted on the London market in 2021 at 410 pence per share, has struggled to regain its initial valuation due to a narrow customer base and geopolitical uncertainties affecting semiconductor trade between the US and China. Qualcomm's interest, first disclosed in April, culminated in a board-backed offer after months of negotiations.

Shareholders face a binary choice: accept the cash offer or exchange each Alphawave share for 0.01662 newly issued Qualcomm shares. A hybrid securities alternative was proposed but rejected by Alphawave's directors over valuation concerns. The acquisition requires at least 75% shareholder approval.