{"id":516917,"date":"2021-07-22T21:22:09","date_gmt":"2021-07-23T01:22:09","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/magna-to-acquire-veoneer-positioning-magnas-adas-business-as-a-global-leader-in-a-fast-growing-industry-2\/"},"modified":"2021-07-22T21:22:09","modified_gmt":"2021-07-23T01:22:09","slug":"magna-to-acquire-veoneer-positioning-magnas-adas-business-as-a-global-leader-in-a-fast-growing-industry-2","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/magna-to-acquire-veoneer-positioning-magnas-adas-business-as-a-global-leader-in-a-fast-growing-industry-2\/","title":{"rendered":"Magna to acquire Veoneer, positioning Magna’s ADAS business as a global leader in a fast-growing industry"},"content":{"rendered":"
\n

PR Newswire<\/p>\n<\/p><\/div>\n

\n

\u00a0– Veoneer’s complementary products and capabilities strengthen and broaden Magna’s\u00a0ADAS portfolio and industry position<\/b><\/p>\n

– Transaction adds significant engineering and software expertise, including in sensor perception and drive policy software<\/b><\/p>\n

– Enhances Magna’s ADAS systems capabilities and feature functionality<\/b><\/p>\n

\n AURORA, Ontario<\/span> and STOCKHOLM<\/span>, July 23, 2021<\/span> \/PRNewswire\/ —\u00a0Magna International Inc. (TSX: MG; NYSE: MGA) and Veoneer, Inc. (NYSE: VNE and SSE: VNE SDB) today announced that they have entered into a definitive merger agreement under which Magna will acquire Veoneer, a leader in automotive safety technology. Pursuant to the agreement, Magna will acquire all of the issued and outstanding shares of Veoneer for $ 31.25<\/span> \u00a0per share in cash, representing a total value of\u00a0\u00a0$ 3.8 billion, and an enterprise value of $ 3.3 billion<\/span>, inclusive of Veoneer’s cash, net of debt and other debt-like items as of March 31, 2021<\/span>.<\/b><\/p>\n

The acquisition builds on Magna’s strengths and positions the company’s advanced driver assistance systems (“ADAS”) business as a global leader 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<\/span>. Magna expects to operate Veoneer’s ArriverTM<\/sup> sensor perception and drive policy software platform as an independent business unit, consistent with Veoneer’s current practice. In addition, Magna will acquire Veoneer’s leading global position in restraint control systems.<\/p>\n

“Veoneer’scomplementary 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,” said Magna CEO Swamy Kotagiri<\/span>. “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.”<\/p>\n

Following the closing of the transaction, Veoneer will be combined with Magna’s existing ADAS business and integrated into Magna’s electronics operating unit. The combined business will build upon relationships with both organizations’ automotive customers, suppliers and technology partners to develop best-in-class products.<\/p>\n

\n Jan Carlson<\/span>, Veoneer’s Chairman, President and CEO said: “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.”<\/p>\n

Mr. Kotagiri added, “We have a great deal of respect for Veoneer’s team around the world and their culture of innovation and creativity. We look forward to welcoming Veoneer’s employees into our global Magna family and are confident that together we will be able to achieve great results and move faster to address the growing ADAS market.”<\/p>\n

HIGHLIGHTS OF THE TRANSACTION<\/b><\/p>\n