• Transaction in line with Magna’s go-forward strategy to accelerate investments in high-growth areas
• Pro forma combined sales of driver assistance systems are expected to be approximately $3 billion in 2024
• Expands Magna’s ADAS portfolio with complementary products, customers, regions, engineering and software resources
• No significant change in leverage profile and continued ample financial flexibility

AURORA, Ont., December 20, 2022 (GLOBE NEWSWIRE) — Magna International Inc. MGMGA announced today that it has signed an agreement to acquire SSW Partners’ Veoneer Active Safety business for $1.525 billion in cash, subject to working capital and other customary purchase price adjustments. The combined business is expected to generate approximately $3 billion in revenue in 2024 and position Magna’s ADAS business as a global leader.

The acquisition builds on the strengths of Magna’s Advanced Driver Assistance Systems (“ADAS”) and positions the combined company with extensive products and capabilities to offer customers a full suite of ADAS solutions.

The acquisition adds significant technical resources and expands Magna’s ADAS customer base and geographic diversification.

“This acquisition is consistent with our go-forward strategy to accelerate investments in high-growth areas, strengthens our ability to provide system solutions that meet customer needs, and positions Magna as the leading full-service ADAS provider,” said Magna CEO Swamy Kotagiri. “We plan to accelerate innovation by building on the strengths of both organizations, including customers, suppliers, technology partners and employees. I am excited to welcome the talented people at Veoneer Active Safety to our global Magna family.”

TRANSACTION OVERVIEW

• Expands Magna’s ADAS sensor and full system capabilities including radar, camera, ADAS ECU and driver monitoring.
• Adds 2,200 engineers, including 1,800 for systems, software, and sensor development.
• Veoneer Active Safety sales are estimated to be around US$1.1.