Qualcomm Inc. has announced its plan to acquire British semiconductor firm Alphawave IP Group for about $2.4 billion in cash. The deal, announced Monday, is expected to close in the first quarter of 2026, pending shareholder and regulatory approval.
Alphawave shareholders will receive 183 pence per share, a price that reflects a 96% premium to the stock’s closing price on March 31, just before Qualcomm’s interest became public.
Qualcomm, best known for its smartphone chips, has been trying to reduce its reliance on mobile devices. The company is now focusing on the growing demand for AI-powered data centers.
“The acquisition of Alphawave Semi aims to further accelerate and provide key assets for Qualcomm’s expansion into data centers,” Qualcomm said in a statement.
Cristiano Amon, Qualcomm’s president and chief executive officer, added: “Alphawave has developed leading high-speed wired connectivity and compute technologies that are complementary to our power-efficient central processing unit and neural processing unit cores.”
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Alphawave’s rise and struggles
Alphawave, which went public in 2021 at 410 pence per share, has struggled to reach that price since its IPO. The company faced challenges from geopolitical tensions, particularly between the US and China, as well as a heavy dependence on a small number of customers.
However, things have been looking up recently. Alphawave CEO Tony Pialis stated earlier this year that North American AI customers were driving a surge in orders, a sign of growing market traction.
Alphawave has also fully exited its Chinese joint venture, WiseWave — an important step, analysts say, in smoothing the regulatory process. Jefferies analysts say that they “do not expect any material regulatory obstacles” following the divestment.
The deal’s details and market reactions
In addition to the cash offer, Qualcomm is offering alternative options. Shareholders can choose to receive 0.01662 Qualcomm shares per Alphawave share. There is also a second alternative involving Qualcomm exchangeable securities, though Alphawave’s board did not recommend these options.
According to Bloomberg, the board said it was “unable to declare whether the second alternative deal, where shareholders trade stock for exchangeable securities, is fair and reasonable given the significant and variable impact of the advantages and disadvantages.”
The Alphawave board has unanimously recommended the cash offer, and directors and shareholders representing about 50% of the shares have already agreed to vote in favor. For the deal to be approved, 75% of the shareholders’ votes must support it.
After the news broke, Alphawave shares jumped more than 23%, trading at around 183.60 pence in London on Monday morning. Qualcomm’s shares also rose about 4%, according to Reuters.
The deal still requires approval from regulators in the US, UK, Germany, South Korea, and Canada. But with Alphawave’s China exit and strong shareholder support, the acquisition appears to be on track.
