Magna to acquire Veoneer Active Safety business

Magna International Inc., Aurora ON, 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, positioning Magna’s ADAS business as a global leader.

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.

Magna’s ICON digital radar with text debuted on vehicles in 2022. Source: Magna

”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.”

Combined with Magna Electronics, the business is projected to have pro forma ADAS sales of approximately $1.8-billion in 2022, approximately $3 billion in 2024, and is expected to generate higher ADAS content per vehicle opportunities.