Qualcomm to Buy UK’s Alphawave IP for $2.4 Bn to Strengthen AI & Data‑Center Chips' Play

Qualcomm Inc. has agreed to acquire Alphawave IP Group, a London-listed semiconductor company, for approximately $2.4 billion in cash to enhance its AI capabilities, Bloomberg reported.

Alphawave, which designs semiconductor technology for data centers, is the latest British company to be acquired in a market affected by low valuations and limited growth, with US buyers capitalizing on firms at relatively low prices and better-performing stock exchanges proving more attractive for share listings.

Alphawave will reportedly receive approximately 183 pence per share under the terms of the offer, according to a statement issued on Monday. That is a 96% premium over the company's share price on March 31, the last trading day before Alphawave and Qualcomm announced the talks. The transaction, still pending regulatory and shareholder approval, is expected to be completed in the first quarter of 2026.

Qualcomm Chief Executive Officer Cristiano Amon aims to reduce the company's reliance on the stagnant smartphone industry, which has experienced stagnation, and expand into new markets.

Alphawave develops high-speed semiconductor and connectivity technology for data centers and AI applications, both of which are growing in the chip industry due to demand for products like OpenAI's ChatGPT.

Alphawave's board has unanimously endorsed the cash offer. To finalize the transaction, investors representing 75% of the shares must vote in favor of it. According to Alphawave, shareholders and directors representing approximately 50% of the company's shares have agreed to vote in favor of the transaction.

Alphawave IPO

Alphawave, which went public in 2021 at 410 pence per share, has consistently traded below that price. The company has faced challenges with dependency on major customers and navigating geopolitical tensions between the United States and China, leading Alphawave to scale back its business last year.

Nevertheless, the company's technology has gained momentum, with orders surging significantly in the fourth quarter. Chief Executive Officer Tony Pialis noted at the time that orders from North American AI customers were driving the business.

In addition to the cash offer, Alphawave shareholders can exchange their shares for 0.01662 Qualcomm shares. Qualcomm also announced that each Alphawave share may be traded for 0.00964 of a new "series A Qualcomm exchangeable security" and 0.00698 of a new "series B Qualcomm exchangeable security."