VNE Stock: 5 Things to Know About Veoneer as Shares Ride Higher Today

Advertisement

Shares of Veoneer (NYSE:VNE) stock are blasting off on Friday following some major mergers and acquisitions (M&A) news.

Concept image of a self-driving car lidar system.

Source: temp-64GTX/Shutterstock.com

Magna International (NYSE:MGA), a Canada-based automotive supplier, announced on Thursday that it is acquiring Veoneer for around $3.8 billion in cash. Magna will be buying Veoneer’s outstanding shares for $31.25 each. The overall enterprise value of this transaction is $3.3 billion.

According to Veoneer, this move “builds on Magna’s strengths and positions the company’s advanced driver assistance systems (‘ADAS’) business as a global leader with comprehensive capabilities.” Additionally, the merger will expand Magna’s customer base and regions for business, particularly in Asia.

The firm’s press release contains more details and highlights about the merger agreement.

So, with this news, what should investors know about Veoneer and its business? Let’s dive in and take a closer look.

  • Based in Sweden, Veoneer focuses on manufacturing ADAS for vehicles.
  • According to its website, the company “designs, develops and manufactures state-of-the-art software, hardware and systems for occupant protection, advanced driving assistance systems, collaborative and automated driving.”
  • The company was founded in 2018 as a result of a spinoff from fellow Swedish car safety supplier Autoliv (NYSE:ALV).
  • In terms of size, Veoneer boasts about 7,500 associates, along with production plants and engineering sites in 11 different countries.
  • More specifically, the firm has six manufacturing sites and 22 technical centers in these locations.

VNE stock was up more than 56% as of Friday afternoon.

On the date of publication, Nick Clarkson did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Nick Clarkson is a web editor at InvestorPlace.


Article printed from InvestorPlace Media, https://investorplace.com/2021/07/vne-stock-5-things-to-know-about-veoneer-as-shares-ride-higher-today/.

©2024 InvestorPlace Media, LLC