Magna International Inc. and Veoneer, a leader in automotive safety technology, have announced that they have entered into a definitive merger agreement. The deal means Magna will acquire Sweden’s Veoneer for $3.8 billion.
Following the closing of the transaction, Veoneer will be combined with Magna’s existing ADAS business and integrated into Magna’s electronics operating unit. Magna says ‘the combined business will build upon relationships with both organisations’ automotive customers, suppliers and technology partners to develop best-in-class products’.
Magna expects to operate Veoneer’s Arriver sensor perception and drive policy software platform as an independent business unit, consistent with Veoneer’s current practice.
The acquisition also expands Magna’s ADAS business with major customers and provides access to new customers and regions, including in Asia.
Magna CEO, Swamy Kotagiri, says: “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. We expect the combined entity to be an industry leader in active safety solutions, to enhance its position in complete ADAS systems, and to be well-positioned for the transition towards higher levels of autonomy. The acquisition is also consistent with our go-forward strategy to accelerate investment in high-growth areas.”
He adds: “We have a great deal of respect for Veoneer’s team around the world and their culture of innovation and creativity. We look forward to welcoming Veoneer’s employees into our global Magna family and are confident that together we will be able to achieve great results and move faster to address the growing ADAS market.”
Jan Carlson, Veoneer’s Chairman, President & CEO, comments: “This is a compelling transaction for all stakeholders. It will deliver significant and immediate value to Veoneer stockholders through an attractive premium to our trading price, and provide new opportunities for our employees to join one of the most capable suppliers in the mobility space. In addition, combining forces with Magna will allow the combined business to elevate its status as a full-systems ADAS supplier, which should benefit our customers, supplier partners and ultimately consumers.”
Magna‘s global network includes 347 manufacturing operations and 84 product development, engineering and sales centres spanning 28 countries.