Canadian auto parts giant Magna International (MG) is buying the active safety business of Veoneer for $1.53 billion U.S. in cash.
Aurora, Ontario-based Magna said the deal will boost its engineering resources and expand its customer base for advanced driver assistance systems.
The purchase of privately held Swedish company Veoneer's operations will give Magna 2,200 new engineers, including 1,800 for systems, software, and sensor development.
Veoneer's active safety sales are projected to reach $1.1 billion U.S. in 2022.
Magna tried to buy all of Veoneer last year but ended up being outbid for the company in an acquisition valued at $4.5 billion U.S.
The sale of the active safety business is expected to close in the middle of 2023, subject to regulatory approvals.
Magna International’s stock is down 30% on the year and trading at $76.22 per share.
