Magna International to buy Veoneer’s active safety business for US$1.525 billion

TORONTO –

Magna International Inc. has signed a deal to purchase Veoneer’s lively security business from funding agency SSW Partners for US$1.525 billion in money.

The Ontario auto elements firm mentioned Tuesday the deal provides vital engineering sources and expands its superior driver help methods buyer base and geographic diversification.

The acquisition of the Swedish firm’s operations will add 2,200 engineers, together with 1,800 for methods, software program and sensor improvement, to Magna.

Veoneer’s lively security gross sales are projected to be about US$1.1 billion in 2022.

Magna CEO Swamy Kotagiri mentioned the deal is in step with the corporate’s technique to speed up funding in high-growth areas.

“We plan to accelerate innovation by building on both organizations’ strengths, including customers, suppliers, technology partners and employees,” Kotagiri mentioned in a press release.

Magna had signed a deal to purchase all of Veoneer final 12 months however failed to finish the transaction after it was outbid by SSW Partners and Qualcomm which paired as much as purchase the corporate in a deal valued at US$4.5 billion.

Qualcomm Inc. subsequently acquired Veoneer’s Arriver business from SSW Partners for an undisclosed sum.

Veoneer CEO Jacob Svanberg mentioned Magna is the suitable long-term residence for the lively security business.

“The combination of both businesses creates durable value and accelerates an already exciting growth trajectory for Veoneer’s employees, products and customers,” Svanberg mentioned

Veoneer mentioned it continues the method of discovering one of the best long-term residence for its restraint management methods business.

The sale of the lively security business is anticipated to shut close to the center of 2023, topic to regulatory approvals and different customary closing situations.

This report by The Canadian Press was first printed Dec. 20, 2022