As per the latest reports, the share prices of Veoneer have experienced a bump. The share prices of the company are soaring as a result of the recent announcement Magna International has made in terms of its expansion. The company has announced that it has recently acquired Veoneer.
Veoneer is an electronics company for automotive safety. The company has reportedly acquired Veoneer at a price of $3.8 billion. One of the most significant detail around the company’s acquisition is how Magna International has proceeded with the purchase.
According to Magna International, it has acquired Veoneer paying $3.8 billion. Astonishingly, the company has paid for the acquisition in cash. The company has reportedly acquired Veoneer at a price of $31.25 per share. This means that Magna International has acquired a total of 102,400,000 shares of Veoneer.
Magna International is a company based in Aurora, Canada. With the latest acquisition, the company is said to strengthen its presence in the international market. The markets it is aiming to target include being the manufacturer of original equipment for companies that manufacture light trucks and vehicles. Furthermore, the company is also aiming to mark its presence in the subsystem designing industry.
Following the acquisition of Veoneer, Magna International has also shared the reason behind its acquisition. According to Magna International, Veoneer’s complementary geographic footprint, customer base, and technology offerings are remarkable. This is the reason why the company has proceeded with the acquisition of Veoneer because it is a guru in its field and it can learn a lot from its experts.
Veoneer is going to prove extremely beneficial for its business for ADAS. Furthermore, the company is going to strengthen its talent base of software developers and global engineers.
The above statement was made by Swamy Kotagiri, the CEO at Magna International. According to Magna International, it is now expecting to lead the safety solutions industry after acquiring Veoneer.
Once the acquisition has been processed, Magna International would have fully acquired Veoneer. Following the acquisition, Magna International would be adding Veoneer to its operating unit for electronics.
By 2024, the company has expected that the synergies’ expected annual run-rate would be around $100 million following the deal. The board members of both companies Magna International and Veoneer have confirmed the details that have been shared regarding their collaboration.
Following the acquisition of Veoneer, the analysts have gone ahead updating the stock price expectations for Veoneer. Initially, the stock prices for Veoneer were set to $19 per unit by the anlaysts, which has now been updated to $31.25 per share.
With the latest acquisition, Magna International is aiming to expand its business and its user base all over the world, eventually increasing its stock prices, profits, and revenues.