Magna to acquire Veoneer active safety business

Transaction aligned with Magna’s Go-Forward strategy of accelerating investments in high-growth areas
• Combined pro forma ADAS sales projected to be approximately $3 billion in 2024
• Broadens Magna’s ADAS portfolio with complementary products, customers, geographies, engineering and software resources
• No significant change in leverage profile and continued ample financial flexibility

Magna International (TSX: MG; NYSE: MGA) announced it has entered into an agreement to acquire the Veoneer Active Safety business from SSW Partners for $1.525 billion in cash, subject to working capital and other customary purchase price adjustments. The combined business is projected to generate approximately $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.

The acquisition 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.”