US chipmaker Qualcomm has agreed a $2.4bn (£1.8bn) takeover of Alphawave – a deal set to result in another UK tech firm falling into foreign hands.
Shareholders in the UK firm, which designs semiconductors attractive in artificial intelligence (AI) development, will receive 183p per share under the terms.
The price represents a 95% premium to that seen before Qualcomm disclosed its interest.
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News of the agreement was announced as the annual London Tech Week got under way in the capital, with Prime Minister Sir Keir Starmer speaking of tech’s importance to the UK’s prospects.
Softbank-owned chipmaker ARM – previously a London-listed firm before it was snapped up under a £32bn deal in 2016 – had also been chasing Alphawave but has since walked away.
The UK company’s “serdes” technology is said to be the main prize within the deal.
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It underpins the speed at which data is processed by chips – crucial for AI development.
Qualcomm said the deal would bolster its enhancement of AI. Its chips have been widely used by Apple and Samsung though its interest in iPhones has recently been curtailed through the development of Apple’s own chip components.
Alphawave said it considered the terms of the cash offer to be fair and reasonable and that it intended to unanimously recommend it to its shareholders.
In his speech marking the start of London Tech Week, the PM said tech and AI were “absolutely central” to the UK.
Cheap valuations and a weak pound have made UK firms attractive to US investors in recent years, while a number of UK listed firms have shifted primary listings to the United States in a bid to attract greater investment.
The government has moved to make UK listings more attractive as part of its growth agenda.
The prime minister launched a new free government partnership with industry, including Nvidia, Amazon, Google and BT, to train 7.5 million UK workers in essential skills to use AI by 2030.
A separate “TechFirst” initiative will roll out AI training to every secondary school over three years.
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Sir Keir told the audience in central London: “AI and tech makes us more human, which sounds an odd thing to say, but it’s true.
“We need to say it because… some people out there are sceptical. They do worry about AI taking their job.”
He said: “For people listening to us, they worry about will it make their lives more complicated? Even for businesses who get it, the pace of change can feel relentless.”
Sir Keir added: “I believe the way that we work through this together is critical.”
