Magna to acquire Veoneer for US$3.8 billion

Auto component firm Magna International said on Thursday that it will acquire automotive safety firm Veoneer for US$3.8 billion.

Magna will acquire all of the issued and outstanding shares of Veoneer for US$31.25 per share in cash, it said.

Veoneer was formed in 2018 when when the autonomous driving business unit span off from Sweden-based Autoliv.

Magna said it will strengthen its advanced driver assistance systems (ADAS) portfolio through the acquisition.

Magna will operate Veoneer’s Arriver sensor perception and drive policy software platform as an independent business unit, it added.

“Veoneer’s complementary 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,”  Magna CEO Swamy Kotagiri said. 

“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.”

Meanwhile, Magna, despite forming a ADAS business unit in South Korea, is yet to supply its solutions to Hyundai Motor or Kia.

Veoneer is seeing sales from its restraint control system in South Korea. However, it will be difficult for the company to enter the supply chain of the South Korean autogiants as it is dominated by Mando and Hyundai Mobis, a person familiar with the matter said.