Chipmaker Qualcomm has provided to purchase Swedish provider for $4.6 billion, an 18.4 % premium to a bid by Canada’s Magna Worldwide that was accepted by Veoneer’s board.

Demand has been on the rise for superior driver help methods, identified within the business as ADAS, that add options starting from collision warning to parking help. Some methods accumulate knowledge from cameras and radar to observe environment, interpret the scenario and take motion.

Qualcomm, other than powering cell phones, has been a chip provider to carmakers for a decade and final yr began its personal line of ADAS methods known as Snapdragon Journey.

Earlier this yr it signed a signed a collaboration cope with Veoneer to develop a software program and chip platform for driver-assistance methods.

Whereas absolutely self-driving automobiles are years away, assisted-driving options, corresponding to adaptive cruise management, are being fitted into new vehicles by most producers.

Qualcomm hopes to develop its automotive chips enterprise by creating open and aggressive platforms for automakers together with Veoneer.

“Because the automotive business continues to remodel, it’s changing into more and more necessary for automakers to have a accomplice who develops horizontal platforms that drive innovation and allow competitors,” stated Qualcomm CEO Cristiano Amon.

Magna has an identical curiosity in shopping for Veoneer because it tries to compete with ADAS makers corresponding to Aptiv, Bosch and Continental to seize a bigger share of the booming enterprise.

Magna had provided to purchase rival Veoneer in July for about $3.8 billion in money, seeking to increase its efforts on constructing driver help tech geared towards autonomous automobiles.