Automotive parts supplier Magna International (NYSE: MGA) is acquiring Veoneer Active Safety business for a consideration of $1.525 billion from SSW Partners.
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The strategic move augments MGA’s capabilities in Advanced Driver Assistance Systems (ADAS) and the combined entity is expected to bring in $3 billion in revenue in 2024.
Importantly, the transaction also boosts Magna’s engineering resources, ADAS customer base as well as geographic footprint.
The deal is anticipated to close in mid of 2023. Shares of the company have dropped more than 20% so far this year.
However, analysts remain cautiously optimistic about MGA stock with a Moderate Buy consensus rating based on seven Buys and four Holds.
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