Magna International has entered into an agreement to acquire the Veoneer Active Safety business from SSW Partners for US$1.525 billion in cash, subject to working capital and other customary purchase price adjustments. The combined business is projected to generate approximately US$3 billion in sales in 2024, positioning Magna’s ADAS business as a global leader.
The acquisition builds on Magna’s Advanced Driver Assistance Systems (ADAS) strengths and positions the combined business with extensive products and capabilities to provide customers with a full suite of ADAS solutions, according to the company. It also adds significant engineering resources and expands Magna’s ADAS customer base and geographic diversification.
“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 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. I am excited to welcome Veoneer Active Safety’s talented employees into our global Magna family.”