ADAS technology is increasingly considered strategically vital. That’s why tech giants Magna International Inc. and Qualcomm Inc. have each tendered bids to acquire Swedish Advanced Driver Assistance System (ADAS) specialist Veoneer, Inc.
Veoneer says that it is a leader in automotive technology, with sensors and software designed to prevent crashes and to minimize the damage when crashes are unavoidable, including the protection of vehicle occupants with restraint systems.
Magna says that a purchase of Veoneer creates a global leader in ADAS with pro forma 2020 ADAS sales of $1.2 billion. The merged companies would enjoy cost-saving synergy worth $100 a year by 2024, Magna’s bid says. Key component categories for the companies would include a camera, radar, lidar, and domain controllers, plus software features/functions that include perception and drive policy.
While Magna already has ADAS systems capabilities, the addition of Veoneer’s know-how adds significant engineering and software competency, according to Magna. Veoneer’s Arriver sensor perception and drive policy software are particularly attractive parts of the acquisition, according to Magna.
There is also improved geographic diversity, as Veoneer has a stronger customer base in the Asian market than Magna does. “Veoneer’s complementary technology offerings, customer base, and geographic footprint make it an excellent fit with our ADAS business, and the acquisition strengthens our global engineering and software development talent base,” said Magna CEO Swamy Kotagiri. “We expect the combined entity to be an industry leader in active safety solutions, to enhance its position in complete ADAS systems, and to be well-positioned for the transition towards higher levels of autonomy.”
Veoneer, Inc. is a nearly 70-year-old, $1.37 billion company with 7,500 employees working in 11 countries. It has been public since 2018, which is why the Veoneer board of directors is obligated to also consider the bid from Qualcomm.
Qualcomm’s bid announcement goes into less technical detail than Magna’s, but the company does say that a purchase of Veoneer would reinforce Qualcomm’s commitment to bring advanced technologies to the automotive industry and represents a natural extension of Qualcomm’s digital chassis solutions.
“As the automotive industry continues to transform, it is becoming increasingly important for automakers to have a partner who develops horizontal platforms that drive innovation and enable competition,” said Cristiano Amon, president and CEO of Qualcomm. “The proposed acquisition will bring together our industry-leading automotive solutions with Veoneer’s assisted driving assets to deliver a competitive and open ADAS platform to automakers and Tier 1 suppliers at scale.”
Veoneer’s assets do look attractive for any company aiming to compete in the ADAS market. Now we await a decision from that company’s board of directors on which suitor they will select.