The automotive technology company, Veoneer Inc. has finalized the split of Zenuity, its software and ADAS joint venture with Volvo Cars.
On April 2, Veoneer and Volvo Cars announced a preliminary agreement to split the software joint venture Zenuity in order for each company to more effectively drive their respective strategies. The parties entered into definitive agreements on July 1. As part of the split, Veoneer received IP licenses and added around 200 software engineers, located in Germany, the U.S. and Sweden, which strengthens its software and systems team focused on the development and commercialization of advanced driver assistance system (ADAS) software for collaborative driving.
As announced earlier, Veoneer expects to achieve annual savings of around $30 million to $40 million as a result of the split. As part of the transaction, Veoneer receives cash of around $15 million.
“During the next decade, more than 90% of our available market will be for advanced driver assistance systems and collaborative driving. I would like to give a warm welcome to the talented people that are now joining us, they will be key contributors in our pursuit for leadership in the growing ADAS market,” said Jan Carlson, chairman, president and CEO, of Veoneer.
