Leading global supplier to the automotive sector, Magna International has announced it has entered into an agreement to acquire the Veoneer Active Safety business from SSW Partners for $1.525 billion in cash. The deal is subject to working capital and other customary purchase price adjustments, and is like to close by mid-2023, a release from the company said.
The acquisition builds on Magna’s strengths in the area of Advanced Driver Assistance Systems (ADAS), and is expected to position the combined business with extensive products and capabilities to provide customers with a full suite of ADAS solutions. The combined business, Magna said, is likely to generate approximately $3 billion in sales in 2024. This will likely position Magna’s ADAS business as a global leader.
“This acquisition is consistent with our Go-Forward strategy to accelerate investment in high-growth areas, strengthens our ability to deliver systems solutions to meet customer needs, and positions Magna as a leading full-service ADAS provider,” said Swamy Kotagiri, CEO, Magna.
The deal to acquire Veoneer Active Safety business diversifies Magna’s ADAS portfolio with complementary products, customers, geographies, engineering and software resources. Magna’s current ADAS portfolio includes ADAS sensor and full systems capabilities, including radar, camera, ADAS ECU and driver monitoring.
The acquisition will add 2,200 engineers, including 1,800 for systems, software and sensor development, said the company.
From a revenue perspective, sales of Veoneer Active Safety are projected to be approximately $1.1 billion in 2022, growing to approximately $1.9 billion in 2024. Combined with Magna Electronics, the business is projected to have pro forma ADAS sales of approximately $1.8 billion in 2022, approximately $3 billion in 2024, and is expected to generate higher ADAS content per vehicle opportunities, the company said.
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