Qualcomm announced that it will spend approximately US$3.9 billion to acquire artificial intelligence software company Modular to provide customers with artificial intelligence technology services that operate more efficiently and have lower usage costs. The semiconductor company disclosed on Wednesday that the acquisition will be paid for by the issuance of additional common shares by Qualcomm. The company plans to issue up to 19.2 million common shares to all Modular shareholders. Based on Qualcomm's closing price of $204.13 on Tuesday, the total value of the transaction is approximately $3.92 billion.
Qualcomm said that the issuance and placement of this stock will be completed through private placement.
Modular specializes in cross-hardware architecture AI efficient running software, which can help developers reduce the overall deployment cost of artificial intelligence projects.
Qualcomm said that this acquisition aims to help customers quickly complete the commercialization of full-scenario artificial intelligence from terminal devices to the cloud.
The transaction is expected to be officially completed in the second half of this year.
News of the acquisition comes as Qualcomm holds an investor day event in New York on Wednesday.