Magna International has entered into an agreement with Veoneer to acquire Veoneer’s Active Safety business from SSW Partners, a New York based investment partnership, for $1.525 billion in cash, subject to working capital and other customary purchase price adjustments, the companies announced.
Combining Veoneer’s Active Safety competence and product portfolio with Magna’s Advanced Driver Assistance Systems, ADAS, business will strengthen the combined business and provide customers in more geographical locations with a full suite of ADAS solutions, company representatives said.
“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.
The transaction with Magna is expected to close near mid-year 2023, subject to approval of applicable regulatory authorities and other customary closing conditions.