Magna International Inc. 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.
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 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. I am excited to welcome Veoneer Active Safety’s talented employees into our global Magna family.”
The transaction is expected to close near mid-year 2023, subject to certain regulatory approvals and other customary closing conditions.
Citi and Sidley Austin LLP serve as financial advisors and legal counsel to Magna, respectively.