Veoneer and Qualcomm sign letter of intent
Plan to cooperate on software for driver assistance
Veoneer's shares jump 16%
Adds background, detail, updates shares
STOCKHOLM, Aug 27 (Reuters) - Veoneer VNE.N, VNEsdb.ST will cooperate with Qualcomm Technologies QCOM.O on developing software for its driver assistance systems, the auto technology firm said on Thursday, sending its shares sharply higher.
The Swedish maker of vision systems, radar and software for advanced driver-assistance systems (ADAS) said it had signed a non-binding letter of intent with the U.S. firm and expected to finalise a definitive agreement in the second half of this year.
Shares in Veoneer listed in Stockholm were up 16.1% at 111.70 crowns ($12.80) at 1247 GMT. Its U.S.-listed shares, set for the best session in over five months, were down nearly 30% this year as of Wednesday's close.
Veoneer, which competes with companies such as Aptiv APTV.N, Bosch and Continental CONG.DE, has been hit hard by the coronavirus pandemic as the car industry has seen production halted in many markets by widespread lockdowns.
Veoneer said in a statement 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.
The company, which supplies carmakers such as Daimler DAIGn.DE,
($1 = 8.7265 Swedish crowns)
(Reporting by Johannes Hellstrom and Helena Soderpalm; Editing by Jason Neely, Anna Ringstrom and David Clarke)
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