By P.R. Venkat
Magna International Inc. is planning to acquire automotive-safety-technology company Veoneer Inc. at an enterprise value of $3.3 billion, in a bid to expand its advanced driver assistance systems business, including in Asia.
As part of the agreement, Magna will acquire all of the issued and outstanding shares of Veoneer for $31.25 per share in cash, Magna said Thursday.
This represents an equity value of $3.8 billion.
"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 Chief Executive Swamy Kotagiri said.
The transaction has been unanimously approved by the boards of Magna and Veoneer. The deal is expected to close near the end of 2021, subject to approval by Veoneer stockholders and certain regulatory approvals.
"This is a compelling transaction for all stakeholders," said Jan Carlso, Veoneer's chairman, president and chief executive.
Write to P.R. Venkat at [email protected]