Recently, automotive technology company Veoneer announced that it has reached an agreement with American Industrial Partners (AIP) managed investment fund, American Industrial Partners Capital Fund VII (AIP Fund VII), to sell its Restraint Control Systems business.
This transaction signifies the completion of Veoneer's strategic efforts, in collaboration with SSW Partners LP (SSW), to find suitable long-term homes for Veoneer's three original business lines. Currently, Arriver™ software business is owned by Qualcomm; the Active Safety Systems business is owned by Magna International, and the Restraint Control Systems business will be acquired by AIP Fund VII.
AIP focuses on establishing investment partnerships with industrial companies, covering various investments in the automotive industry. This acquisition combines AIP's expertise in investment operations with Veoneer's leading position and products in the restraint control systems field, creating a robust platform for the long-term sustainable growth of Veoneer, its customers, products, and employees.
"We are pleased to announce this transaction with AIP, bringing with them differentiated operational skills and long-term capital to provide an attractive platform for Veoneer's future growth," said Jacob Svanberg, CEO of Veoneer. "We thank our loyal customers, supplier partners, and dedicated employees whose relentless pursuit of quality and innovation has created a leading life-safety technology platform."
In April 2022, SSW acquired Veoneer in an all-cash transaction valued at $4.6 billion. Subsequently, Qualcomm completed the acquisition of Arriver™ business from SSW. On June 1, 2023, Magna International completed the acquisition of Veoneer's Active Safety business.
Currently, Evercore and Morgan Stanley serve as financial advisors for Veoneer and SSW. Davis Polk & Wardwell LLP and Eversheds Sutherland LLP act as legal advisors for Veoneer and SSW. Ropes & Gray LLP serves as legal counsel for AIP, and Baker Botts LLP serves as regulatory advisors for AIP, Veoneer, and SSW.
