© Veoneer Electronics Production | July 23, 2021
Magna to acquire Veoneer
Magna International announces that the comapny have entered into a definitive merger agreement under which Magna will acquire automotive safety technology company Veoneer.
According to the agreement, Magna will acquire all of the issued and outstanding shares of Veoneer for USD 31.25 per share in cash, representing a total value of USD 3.8 billion, and an enterprise value of USD 3.3 billion, a press release reads. The acquisition builds on Magna’s strengths and positions the company’s advanced driver assistance systems (ADAS) business among the top with comprehensive capabilities. The acquisition also expands Magna’s ADAS business with major customers and provides access to new customers and regions, including in Asia. 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. "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,” says Magna CEO Swamy Kotagiri in the press release. “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.” Following the closing of the transaction, Veoneer will be combined with Magna’s existing ADAS business and integrated into Magna’s electronics operating unit. “This is a compelling transaction for all our 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,” says Jan Carlson, Veoneer’s Chairman, President and CEO.