Magna International has reached a definitive merger agreement to acquire lidar developer Veoneer. The Canadian company will purchase all issued and outstanding shares of Veoneer for US$31.25 per share, representing a total value of US$3.8bn and an enterprise value of US$3.3bn.
Magna says this move will build on its existing strengths and augment the capabilities of its ADAS business. It will also provide access to new customers and regions, including in Asia. Magna expects to operate Veoneer’s Arriver sensor perception and drive policy software platform as an independent business unit, consistent with Veoneer’s current practice.
“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 toward 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. Jan Carlson, Veoneer’s chairman, president and CEO, added, “This is a compelling transaction for all our stakeholders. It will deliver significant and immediate value to Veoneer stockholders through an attractive premium to our trading price, and provide new opportunities for our employees to join one of the most capable suppliers in the mobility space. In addition, combining forces with Magna will allow the combined business to elevate its status as a full-systems ADAS supplier, which should benefit our customers, supplier partners and, ultimately, consumers.”