US semiconductor giant Qualcomm has reached an agreement to acquire UK-listed chip designer Alphawave in a $2.4 billion all-cash deal, continuing a trend of high-profile tech companies departing the London stock exchange. The move is expected to bolster Qualcomm’s capabilities in data centre infrastructure, 5G networking, and artificial intelligence (AI).
Under the terms of the agreement, Qualcomm will pay 183 pence per Alphawave share — a 96% premium over the closing price on March 31, the last trading day before the deal was disclosed. Despite the premium, the offer values Alphawave at less than half its £3.1 billion market capitalization at the time of its 2021 London IPO, when shares were priced at 410p.
Strategic Expansion in AI and Data Infrastructure
The acquisition aligns with Qualcomm’s broader strategy to strengthen its intellectual property portfolio and technology offerings amid a global AI infrastructure buildout. “This acquisition will help us deliver next-level computing performance across several high-growth markets, including data centre infrastructure,” said Qualcomm CEO Cristiano Amon.
Alphawave, which specializes in high-speed connectivity chip designs, licenses its intellectual property for use in data centres, 5G infrastructure, and autonomous vehicles. The company has been seen as a key player in enabling faster and more efficient data transmission — crucial for next-generation AI applications.
Tony Pialis, CEO of Alphawave, said the deal will provide the UK company with greater scale and resources: “This acquisition positions us to broaden our customer reach, enhance our technological capabilities, and accelerate product innovation.”
Shareholder Support and Deal Timeline
Alphawave’s board of directors has unanimously recommended the offer, encouraging shareholders to vote in favor of the acquisition. Shareholders will have the option to receive payment either in cash or through Qualcomm stock.
The deal is expected to close during the first quarter of 2026, subject to regulatory and shareholder approvals.
Another Blow to London’s Tech Sector
Alphawave’s exit comes amid a broader exodus of technology firms from the London market. Just last week, fintech company Wise announced plans to shift its primary listing from London to New York. Similarly, Deliveroo is being acquired by U.S.-based DoorDash, and cyber security firm Darktrace was recently purchased by private equity group Thoma Bravo for $5.3 billion.
Alphawave, originally founded in Canada and headquartered in Toronto, went public in London in May 2021, raising £856 million. However, its valuation has declined sharply since then, driven in part by uncertainty surrounding tariffs introduced under U.S. President Donald Trump, and delays in customer program rollouts.
The company had warned in April that it could not provide financial guidance for the year, citing macroeconomic headwinds. At the time, Alphawave was also a target for short sellers, which added further pressure to its stock performance.
Qualcomm Navigates Competitive Pressures
Qualcomm, which earns the majority of its revenue from mobile chip sales and licensing, reported solid first-quarter results in April. The company noted it did not expect significant impacts from global tariffs, despite broader concerns affecting parts of the semiconductor industry.
Still, Qualcomm has faced its own challenges. In March, Apple released its first iPhone featuring a custom-built in-house modem, replacing a component that Qualcomm had long supplied. The loss of the Apple modem contract underscores Qualcomm’s need to diversify its revenue streams and further embed itself in other high-growth sectors like AI and data infrastructure — a goal that this Alphawave acquisition is set to advance.
