Autoliv Expands Active Safety Capability
16 July 2015 – Autoliv, Inc. (NYSE: ALV and SSE: ALIVsdb), one of the worldwide leaders in automotive safety systems announced today that it has entered into a definitive agreement to acquire the automotive business of M/A-COM Technology Solutions Holdings, Inc. (NASDAQ: MTSI) (MACOM).
The “Automotive Solutions” business that Autoliv intends to acquire is a carve-out of the automotive business of MACOM, a leading supplier of high-performance analogue RF, microwave, millimeterwave and photonic semiconductor products.
The “Automotive Solutions” business of MACOM is a leading supplier of integrated, embedded Global Positioning System (GPS) modules to the automotive industry. Based in Lowell, Massachusetts, USA, the business includes 25 technical, commercial and manufacturing support employees focused on the design, development and production of GPS modules. The 2015 annual revenue estimate is to be around $90 million and this transaction is expected to be accretive to Autotliv margins upon closing.
Other technologies and intellectual property included in the transaction are various Radio Frequency (RF) and antenna products (hardware and software) and Electronic Horizon, which is an advanced driver assistance system connecting navigation and GPS data to improve safety, fuel efficiency and reduce emissions.
"This acquisition expands our capability in the Active Safety market and provides additional building blocks to our portfolio in automated driving”, said Autoliv Chairman, President & CEO Mr. Jan Carlson. “This transaction also reinforces our commitment to our safety systems approach”, added Mr. Carlson.
The purchase price for the “Automotive Solutions” business is $100 million in cash, subject to customary working capital and other adjustments, plus up to an additional $30 million in cash based on achievement of revenue-based earn-out targets through 2019. In addition, MACOM has agreed to perform consulting services for Autoliv over a 2-year period for up to $15 million in fees.
The acquisition is expected to close during the third quarter of 2015 and is subject to customary closing conditions, including regulatory approval.
Autoliv, Inc, one of the worldwide leaders in automotive safety systems, develops and manufactures automotive safety systems for all major automotive manufacturers in the world. Together with its joint ventures, Autoliv has close to 80 facilities with more than 60,000 employees in 28 countries. In addition, the Company has ten technical centres in nine countries around the world, with 21 test tracks, more than any other automotive safety supplier. Sales in 2014 amounted to US $9.2 billion. The Company's shares are listed on the New York Stock Exchange (NYSE: ALV) and its Swedish Depository Receipts on the OMX Nordic Exchange in Stockholm (ALIV sdb). For more information about Autoliv, visit their company website at www.autoliv.com.
MACOM is one of the leading suppliers of high-performance analogue RF, microwave, millimeterwave and photonic semiconductor products that enable next-generation Internet and modern battlefield applications. Recognized for its broad catalogue portfolio of technologies and products, MACOM serves diverse markets, including high speed optical, satellite, radar, wired and wireless networks, industrial, medical, and mobile devices.
Headquartered in Lowell, Massachusetts, MACOM is certified to the ISO9001 international quality standard and ISO14001 environmental management standard. MACOM has design centers and sales offices throughout North America, Europe, Asia and Australia. For more information, visit (http://www.macom.com/)
Source: Business Wire