Magna to Acquire Veoneer in Bid to Strengthen Driver Assistance Tech Business
July 22 2021 - 9:10PM
Dow Jones News
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 venkat.pr@wsj.com
(END) Dow Jones Newswires
July 22, 2021 20:55 ET (00:55 GMT)
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