Magna International Inc. has agreed to buy a driver-assistance unit from SSW Partners for about $1.5 billion following a drawn-out battle to control the previous parent of the business, Veoneer Inc.
(Bloomberg) — Magna International Inc. has agreed to buy a driver-assistance unit from SSW Partners for about $1.5 billion following a drawn-out battle to control the previous parent of the business, Veoneer Inc.
The purchase will complement the Canadian-Austrian automotive supplier’s advanced driver-assistance business, with combined sales expected to reach $3 billion in 2024, Magna said Tuesday. The cash acquisition will also add engineering resources and expand the company’s customer base.
Magna fell 2.2% to $55.81 at 9:46 a.m. in New York. The shares have fallen 31% this year.
“We plan to accelerate innovation by building on both organizations’ strengths, including customers, suppliers, technology partners and employees,” Magna Chief Executive Officer Swamy Kotagiri said in a statement.
Carmakers and suppliers have been fine-tuning their approach to self-driving and driver-assistance systems after struggling to deliver meaningful progress on deploying robotaxis on public roads. Volkswagen AG and Ford Motor Co. last month pulled their support from self-driving firm Argo, after pouring billions into the startup. Other carmakers like Tesla Inc. have also fallen short on self-driving goals.
Magna’s deal follows a takeover battle last year that saw Qualcomm Inc. partner with private equity group SSW to take Veoneer private for $4.5 billion. The US chipmaking giant took the Arriver autonomous-driving software operation, while SSW worked alongside Veoneer management to buy the rest of the Swedish company with plans to sell it onwards.
The Qualcomm group trumped an earlier offer from Magna.
Read More:
SSW Partners Is Said to Prepare Auto Supplier Veoneer for Sale
Qualcomm Prevails Over Magna With $4.5 Billion Veoneer Deal
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