Magna will buy Veoneer’s active-safety business from the current owners, New York-based investment group SSW Partners, for USD $1.525bn in cash. Combining Veoneer’s active safety competence and product portfolio with Magna’s ADAS business is expected to strengthen the combined business and provide customers in more geographical locations with a full suite of ADAS solutions.
Magna CEO Swamy Kotagiri says the acquisition comports “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”.
And Veoneer CEO Jacob Svanberg says “Magna is the right long-term home for Veoneer’s active-safety business. The combination of both businesses creates durable value and accelerates an already exciting growth trajectory for Veoneer’s employees, products and customers”.
The transaction with Magna is expected to close near mid-year 2023, subject to approval of applicable regulatory authorities and other customary closing conditions. This past April, SSW Partners bought Veoneer in an all-cash transaction for $4.6bn. With the announcement to sell the active-safety business to Magna, Veoneer continue their process of finding a suitable buyer for their restraint control systems business.
