Canadian supplier Magna International Inc. said Tuesday it has agreed to acquire Veoneer Active Safety from investment firm SSW Partners for $1.53 billion in cash to bolster its portfolio of self-driving technology.
The transaction, which is expected to close by mid-2023, will give Magna access to Veoneer’s suite of camera and radar systems, as well as driver monitoring technology and domain controllers. Magna will acquire approximately 2,200 engineers as a result of the transaction. Most of them work in major system, software and sensor development areas.
The move is expected to significantly boost earnings for Magna’s Advanced Driver Assistance Systems business, which generated approximately $550 million in revenue in 2021. .
Combined with Veoneer’s assets, Magna expects its ADAS business to grow to approximately $3 billion by 2024.
Magna CEO Swamy Kotagiri said on a conference call with analysts. “We are one of the leaders in camera and radar technology and should be able to serve two of the largest total markets addressable with ADAS.”