Magna International (TSX:MG) Inc announced it has entered into an agreement to acquire the Veoneer Active Safety business from SSW Partners for $1.525 billion in cash to bolster its advanced driver-assistance system (ADAS) offering.
The Aurora, Ontario-based company said the combined business is projected to generate approximately $3 billion in sales in 2024, positioning Magna’s ADAS business as a global leader.
The company said the deal broadens Magna’s ADAS portfolio with complementary products, customers, geographies, and software resources.
READ: Seeing Machines: Magna deal demonstrates 'great value' of its technology, says broker
''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,'' commented Magna CEO Swamy Kotagiri.
''We plan to accelerate innovation by building on both organizations' strengths, including customers, suppliers, technology partners and employees.”
Magna noted that the transaction is expected to close near mid-year 2023, subject to certain regulatory approvals and other customary closing conditions.
Contact the author at emily.jarvie@proactiveinvestors.com
Follow her on Twitter @emilyjjarvie