Post by
Dibah420 on Jul 23, 2021 1:26pm
RBC on the Acquisition
| RBC on Magna's Acquisition of Veoneer |
|
01:00 PM EDT, 07/23/2021 (MT Newswires) -- Magna has agreed to acquire Veoneer (VNR) for (all in US$) $31.25/share or $3.8 billion ($3.3 billion EV) in an all-cash transaction. VNR's pro forma 2020 advanced driver assistance systems (ADAS) sales are $1.2 billion. RBC expects a little over 50% of VNR's 2021E revenue to be ADAS-related. Magna also receives VNR's restraint control systems business. The combined company has competency across camera, radar, LiDAR and domain controllers as well as software for perception and drive policy. RBC notes that Magna will enhance their engineering and software teams and the company expects to get greater ADAS CPV, driven by the opportunity to offer more complete and integrated ADAS systems, including software. The acquisition diversifies Magna's ADAS customer and geographic exposure. Magna expects $100 million in annual run-rate synergies by 2024. The transaction has been unanimously approved by both boards and 40% of VNE shareholders have agreed to support the deal which is expected to close near the end of 2021. Price: 102.95, Change: -4.06, Percent Change: -3.79 |
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