The combined business is projected to generate approximately $3 billion in sales in 2024, which Magna said would position it as a global leader in Advanced Driver Assistance Systems (ADAS).
”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.”
“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. Until closing of the agreement, Veoneer continues to execute in its current structure with full focus on customer deliveries, new launches and continued innovation,” said Jacob Svanberg, Chief Executive Officer, Veoneer.
In April 2022, SSW Partners acquired Veoneer in an all-cash transaction representing a total equity value of $4.6 billion. Qualcomm Incorporated subsequently completed the acquisition of Arriver from SSW Partners for an undisclosed sum.
With the announcement to sell the Active Safety business to Magna, Veoneer continues the process of finding the best long-term home for its Restraint Control Systems business.
The transaction with Magna is expected to close near mid-year 2023, subject to approval of applicable regulatory authorities and other customary closing conditions.
Evercore and Morgan Stanley& Co. LLC acted as financial advisors to Veoneer and SSW Partners. Davis Polk & Wardwell LLP acted as legal counsel and Baker Botts L.L.P acted as regulatory counsel to Veoneer and SSW Partners.