- Magna International (MGA) announced it is buying the Veoneer Active Safety business from SSW Partners for $1.525 billion.
Magna International (MGA) announced it has entered into an agreement to buy the Veoneer Active Safety business from SSW Partners for $1.525 billion in cash, subject to working capital and other customary purchase price adjustments. And the combined business is projected to generate approximately $3 billion in sales in 2024, positioning Magna’s ADAS business as a global leader.
This acquisition builds on Magna’s Advanced Driver Assistance Systems (ADAS) strengths and positions the combined business with extensive products and capabilities to provide customers with a full suite of ADAS solutions. And the acquisition adds significant engineering resources and expands Magna’s ADAS customer base and geographic diversification.
1.) Broadens Magna’s ADAS sensor and full systems capabilities, including radar, camera, ADAS ECU, and driver monitoring.
2.) Adds 2,200 engineers, including 1,800 for systems, software, and sensor development.
3.) Veoneer Active Safety sales are projected to be approximately $1.1 billion in 2022 and grow to approximately $1.9 billion in 2024.
4.) Combined with Magna Electronics, the business is projected to have pro forma ADAS sales of approximately $1.8 billion in 2022, approximately $3 billion in 2024, and is expected to generate higher ADAS content per vehicle opportunities.
5.) Magna expects to maintain a strong balance sheet with an adjusted debt to adjusted EBITDA ratio modestly above Magna’s 1.0 to 1.5 target range by the end of 2023, with continued ample financial flexibility.
6.) Cash purchase price of $1.525 billion, subject to working capital and other customary purchase price adjustments.
7.) Transaction expected to close near mid-year 2023, subject to certain regulatory approvals and other customary closing conditions.
”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.”
- Magna CEO Swamy Kotagiri