TORONTO — Magna International Inc. has signed a deal to buy Veoneer's active safety business from investment firm SSW Partners for US$1.525 billion in cash.
The Ontario auto parts company said Tuesday the deal adds significant engineering resources and expands its advanced driver assistance systems customer base and geographic diversification.
The acquisition of the Swedish company's operations will add 2,200 engineers, including 1,800 for systems, software and sensor development, to Magna.
Veoneer's active safety sales are projected to be about US$1.1 billion in 2022.
Magna CEO Swamy Kotagiri said the deal is consistent with the company's strategy to accelerate investment in high-growth areas.
''We plan to accelerate innovation by building on both organizations' strengths, including customers, suppliers, technology partners and employees," Kotagiri said in a statement.Â
Magna had signed a deal to buy all of Veoneer last year but failed to complete the transaction after it was outbid by SSW Partners and Qualcomm which paired up to buy the company in a deal valued at US$4.5 billion.Â
Qualcomm Inc. subsequently acquired Veoneer's Arriver business from SSW Partners for an undisclosed sum.Â
Veoneer CEO Jacob Svanberg said Magna is the right long-term home for the active safety business.Â
"The combination of both businesses creates durable value and accelerates an already exciting growth trajectory for Veoneer's employees, products and customers," Svanberg saidÂ
Veoneer said it continues the process of finding the best long-term home for its restraint control systems business.Â
The sale of the active safety business is expected to close near the middle of 2023, subject to regulatory approvals and other customary closing conditions.
This report by The Canadian Press was first published Dec. 20, 2022.
Companies in this story: (TSX:MG)
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