Magna to buy Veoneer Active Safety for $1.53 billion

canadian supplier Magna International Co., Ltd. Said he had agreed to buy on Tuesday Voneer Active Safety It received $1.53 billion in cash from investment firm SSW Partners to strengthen its portfolio of self-driving technology.

The transaction will enhance Magna’s overall sensor and system capabilities, including radar, camera and driver monitoring, and will add 2,200 engineers for system, software and sensor development.

Veoneer Active Safety sales are projected to grow to approximately $1.1 billion in 2022 and approximately $1.9 billion in 2024.

The deal is expected to close near mid-2023, Magna said in a statement.

The sale of the business should come as no surprise. SSW acquired a unit $4.5 billion deal in October 2021 This included Qualcomm’s purchase of Veoneer’s Arriver self-driving software unit. At the time, Magna was also bidding for the same Veoneer property, but Qualcomm and SSW won the business after beating Magna’s offer by 18%.

Speculation quickly swirled last year that Magna would eventually bid for the Veoneer active safety business line, which Qualcomm didn’t want.

Magna CEO Swamy Kotagiri said in a statement: The company had scheduled a morning press conference to discuss the acquisition.

Automakers and suppliers have fine-tuned their approaches to autonomous driving and driver assistance systems after struggling to bring meaningful progress to the deployment of robo-taxis on public roads. Volkswagen Group and Ford Motor Co. last month withdrew support from self-driving company Argo after pouring billions into the startup. Other automakers, such as Tesla, have also fallen short of their self-driving goals.

Magna stock It rose 3.2% to $58.90 in pre-market trading.

Magna ranks #4 car news List of the top 100 global suppliers with $36.2 billion in worldwide sales to automakers in 2021.

Automotive News’ Reuters, Bloomberg and Philippe Nussel contributed to this report.

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