Magna acquiring Swedish driver technology firm Veoneer for $3.8 billion

In a deal that aims to strengthen its offerings in advanced driver assistance technology, Canadian auto parts maker Magna International Inc. is acquiring Swedish automotive safety technology firm Veoneer for US$3.8 billion including debt.

In a July 22 news release, Aurora, Ont.-based Magna said the deal “builds on [its] strengths and positions the company’s advanced driver assistance systems (“ADAS”) business as a global leader with comprehensive capabilities.”

“The acquisition also expands Magna’s ADAS business with major customers and provides access to new customers and regions, including in Asia,” it said.

Magna said it plans to operate Veoneer’s Arriver sensor perception and drive policy software platform as an independent business unit, consistent with Veoneer’s current practice.

Veoneer will be combined with Magna’s existing ADAS business and integrated into its electronics operating unit.

Magna CEO Swamy Kotagiri says the acquisition is consistent with its strategy to accelerate investments in high-growth areas. “Veoneer’s complementary technology offerings, customer base, and geographic footprint make it an excellent fit with our ADAS business, and the acquisition strengthens our global engineering and software development talent base,” he said in the news release.