Magna buys Swedish sensor maker Veoneer  in $3.8bn deal

Magna buys Swedish sensor maker Veoneer in $3.8bn deal

Business news |
Canadian automotive tier one supplier Magna International is to buy Swedish competitor Veoneer in a $3.8bn deal
By Nick Flaherty


The $3.8bn (€3.2bn) acquisition of Swedish sensor maker Veoneer builds on Magna’s strengths in advanced driver assistance systems (ADAS). The deal also expands Magna’s ADAS business with major customers and provides access to new customers and regions, including in Asia.

Magna intends to operate Veoneer’s Arriver 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.

“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,” said Magna CEO Swamy Kotagiri. “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.”

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.

The transaction creates a new heavyweight in the global ADAS business; in 2020 both companies combined achieved ADAS sales of $1.2 billion. The move also strengthens Magna’s innovation capabilities in key component segments such as cameras, radar and lidar sensors as well as domain controllers. The same holds true for the combines company’s software assets including perception and drive policy. In total, it enhances Magna’s ADAS systems capabilities and adds significant engineering and software competency, including Veoneer’s Arriver sensor perception and drive policy software.

The complementary nature of the two businesses is expected to result in greater ADAS content per vehicle for Magna driven by the opportunity to offer more complete and integrated ADAS systems, inclusive of software, Magna said in a press release. The combined entity will have a well-diversified customer base. In addition, Veoneer’s business and footprint in Asia builds on Magna‘s customer and geographic bases in this important region.

In addition, Magna expects to save $100m a year by 2024. The transaction has been unanimously approved by the Veoneer and Magna boards of directors and is expected to close by the end of 2021, subject to the approval of Veoneer’s stockholders and regulatory approvals.

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