Magna to buy Veoneer’s active safety business for $1.5 billion
Canadian Plastics
Automotive Canadian PlasticsThe deal aims to expand Magna's advanced driver assistance systems capabilities.
Image Credit: Magna International Inc.
Automotive parts supplier Magna International Inc. has signed a deal to buy auto technology developer Veoneer’s active safety business from investment firm SSW Partners for US$1.525 billion in cash.
In a Dec. 20 news release, the Aurora, Ont.-based company said the deal adds significant engineering resources and expands its advanced driver assistance systems (ADAS) customer base and geographic diversification.
The acquisition will also add 2,200 engineers – including 1,800 for systems, software and sensor development – to Magna.
Veoneer’s active safety sales are projected to be about US$1.1 billion in 2022.
”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 Magna CEO Swamy Kotagiri. ”We plan to accelerate innovation by building on both organizations’ strengths, including customers, suppliers, technology partners and employees.”
The agreement is expected to close near the middle of 2023, subject to regulatory approvals and other customary closing conditions.
