According to Magna International, the acquisition will expand its ADAS sensor and full systems capabilities, including camera, ADAS ECU, radar, and driver monitoring

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Veoneer’s Active Safety business to be acquired by Magna for $1.5bn. (Credit: Raysonho @ Open Grid Scheduler / Grid Engine / Wikipedia.org)

Magna International has agreed to acquire Veoneer’s Active Safety business from SSW Partners, a New York-based investment partnership, in an all-cash deal worth $1.53bn.

The acquisition is said to build on the strengths of the Canada-based mobility technology company’s advanced driver assistance systems (ADAS) and positions the enlarged entity to deliver customers with a full suite of ADAS solutions.

Besides, the deal is anticipated to expand Magna International’s ADAS customer base and geographic diversification along with the addition of significant engineering resources.

The combined entity is expected to generate about $3bn in sales in 2024.

Veoneer, which is a Swedish automotive technology company, is a tier-1 hardware supplier and system integrator.

Veoneer CEO Jacob Svanberg 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.”

According to Magna International, the deal will expand its ADAS sensor and full systems capabilities, including camera, ADAS ECU, radar, and driver monitoring.

Magna International CEO Swamy Kotagiri said: ”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.

”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.”

The deal, which is subject to regulatory approvals and other customary conditions, is expected to close around mid-year 2023.

In April this year, SSW Partners acquired Veoneer in an all-cash deal representing a total equity value of $4.6bn. Subsequently, SSW Partners completed the sale of Veoneer’s Arriver business to Qualcomm.

The SSW, Qualcomm deal followed Veoneer’s termination of a $3.8bn deal with Magna International.