Stockholm and New York, December 6, 2023: The automotive technology company Veoneer announced that it has entered into an agreement with an investment fund managed by American Industrial Partners (“AIP”), for the acquisition of Veoneer’s Restraint Control Systems business from SSW Partners LP (“SSW”).
The transaction with American Industrial Partners Capital Fund VII (“AIP Fund VII”) completes Veoneer’s and SSW’s strategy of finding the right long-term homes for it’s three original lines of business. Qualcomm now owns Arriver™ Software, one of Veoneer’s original lines of business, as part of its strategy. Magna International now owns another original line of business, Active Safety. Moreover, the third original line of business, Restraint Control Systems, is set to be acquired by AIP Fund VII.
AIP invests in industrial businesses with a long track record of partnering with and growing businesses across industrial end markets. This includes several investments in the automotive sector. The combination of AIP’s process for investing behind operational capabilities and it’s industry-leading position, products, and competence in Restraint Control Systems creates a strong platform for long-term, sustainable growth. This also benefits its customers, products, and people.
“We are pleased to announce this transaction with AIP. They bring a differentiated operating skillset alongside long-term capital that presents a compelling platform for Veoneer’s future growth,” said Jacob Svanberg, Chief Executive Officer, Veoneer. “We are grateful for our loyal customers, supplier partners, and our dedicated employees. Furthermore, their relentless pursuit of quality and innovation has created a leading platform of life-saving technology.”
In April 2022, SSW acquired Veoneer in an all-cash transaction representing a total equity value of $4.6 billion. Qualcomm Incorporated (NASDAQ: QCOM) subsequently completed the acquisition of Arriver™ from SSW. Moreover, on June 1, 2023 Magna International completed the acquisition of Veoneer’s Active Safety business.
Evercore and Morgan Stanley & Co. LLC acted as financial advisors to Veoneer and SSW. Moreover, Davis Polk & Wardwell LLP and Eversheds Sutherland LLP acted as legal counsels to Veoneer and SSW. Ropes & Gray LLP acted as legal counsel to AIP. Baker Botts LLP acted as regulatory counsel to AIP, Veoneer and SSW.
