ADAS equipment supplier acquisition

Autoliv enters agreement to purchase business unit specialising in GPS and other electronic equipment used in the development of ADAS product.

Autoliv has agreed to acquire the automotive business of M/A-COM Technology Solutions Holdings. The “Automotive Solutions” business that Autoliv intends to acquire is a carve-out of the automotive business of MACOM, a supplier of high-performance analog RF, microwave, millimeter wave and photonic semiconductor products.

The “Automotive Solutions” business of MACOM also provides 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.

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, Mr Jan Carlson. “This transaction also reinforces our commitment to our safety systems approach”.

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 up to and including 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.

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