Canadian supplier Magna International Inc. said on Tuesday it agreed to buy Veoneer Active Safety from investment firm SSW Partners for $1.53 billion in cash to bolster its portfolio of self-driving technology.
The deal, expected to close by mid-2023, gives Magna access to Veoneer's suite of camera and radar systems, as well as its driver monitoring technology and domain controllers. Magna will gain about 2,200 engineers as a result of the deal, most of which work in key systems, software and sensor development areas.
The move is expected to provide a major boost in revenue for Magna's advanced driver assistance systems business, which generated about $550 million in revenue in 2021. Veoneer Active Safety sales are projected to be about $1.1 billion in 2022 and increase to about $1.9 billion in 2024.
Combined with Veoneer's assets, Magna expects its ADAS business to grow to about $3 billion by 2024.
"We expect our combined product lines to have enhanced experience and scale," Magna CEO Swamy Kotagiri said on a call with analysts. "We should be among the leaders in camera and radar technology, which would address two of the largest total addressable markets in ADAS."