STOCKHOLM (Reuters) – Veoneer (VNE.N) (VNEsdb.ST) will cooperate with Qualcomm Technologies (QCOM.O) on software for its driver assistance systems, the auto technology firm said on Thursday, sending its shares sharply higher.
The Swedish company said it had signed a non-binding letter of intent with the U.S. firm and expects to finalize a definitive agreement in the second half of this year.
Veoneer said it would develop an integrated platform with Qualcomm to be available through automotive Tier 1 suppliers or directly to original equipment manufacturers (OEM) for 2024 vehicle production.
“This relationship not only strengthens our product portfolio, but also broadens our go-to-market position and opportunities, while giving customers more ways to access world-leading technology,” Veoneer CEO and chairman Jan Carlson said in a statement.
Veoneer shares were up 15.4% at 111 Swedish crowns ($12.71) at 1209 GMT.
($1 = 8.7322 Swedish crowns)