Veoneer and Volvo Cars Finalize Split of Software Joint Venture Zenuity

Rhea-AI Summary

Veoneer, a leader in automotive technology, has completed the split of its software joint venture Zenuity with Volvo Cars. This move grants Veoneer IP licenses and brings on approximately 200 software engineers, enhancing its capabilities in advanced driver assistance systems (ADAS). The company is projected to save between $30 million to $40 million annually due to this separation, alongside receiving $15 million in cash. Veoneer aims to capitalize on the burgeoning ADAS market, which is expected to constitute over 90% of its available market within the next decade.

Positive

• Acquisition of around 200 software engineers to boost ADAS development.
• Projected annual savings of $30 million to $40 million.
• Received $15 million in cash as part of the split.

Negative

• None.

STOCKHOLM, July 2, 2020 /PRNewswire/ -- The automotive technology company, Veoneer, Inc. (NYSE: VNE and SSE: VNE SDB), has finalized the split of Zenuity, its software and ADAS joint venture with Volvo Cars. As part of the split, Veoneer received IP licenses and strengthened its software and systems team with around 200 software engineers joining the Company.

On April 2, Veoneer and Volvo Cars announced a preliminary agreement to split the software joint venture Zenuity in order for each company to more effectively drive their respective strategies.  The parties entered into definitive agreements on July 1.  As part of the split, Veoneer received IP licenses and added around 200 software engineers, located in Germany, the US and Sweden, which strengthens its software and systems team focused on the development and commercialization of advanced driver assistance system (ADAS) software for collaborative driving.

As announced earlier, Veoneer expects to achieve annual savings of around $30 - $40 million as a result of the split. As part of the transaction, Veoneer receives cash of around $15 million.

"During the next decade, more than 90% of our available market will be for advanced driver assistance systems and collaborative driving. I would like to give a warm welcome to the talented people that are now joining us, they will be key contributors in our pursuit for leadership in the growing ADAS market", says Jan Carlson, Chairman, President & CEO, of Veoneer.
 

For more information please contact:
Thomas Jönsson, EVP Communications & IR, tel +46 (0)8 527-762-27
Ray Pekar, VP Investor Relations, tel +1 (248) 794-4537
 

Veoneer, Inc. is a worldwide leader in automotive technology. Our purpose is to create trust in mobility. We design, manufacture and sell state-of-the-art software, hardware and systems for occupant protection, advanced driving assistance systems, and collaborative and automated driving to OEMs globally. Headquartered in Stockholm, Sweden, Veoneer has 7,600 employees in 13 countries. In 2019, sales amounted to $1.9 billion. The Company is building on a heritage of close to 70 years of automotive safety development. In 2018, Veoneer became an independent, publicly traded company listed on the New York Stock Exchange (NYSE: VNE) and on the Nasdaq Stockholm (SSE: VNE SDB).
 

Safe Harbor Statement: This release contains statements that are not historical facts but rather forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include those that address activities, events or developments that Veoneer, Inc. or its management believes or anticipates may occur in the future. All forward-looking statements are based upon our current expectations, various assumptions and/or data available from third parties. Our expectations and assumptions are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that such forward-looking statements will materialize or prove to be correct as forward-looking statements are inherently subject to known and unknown risks, uncertainties and other factors which may cause actual future results, performance or achievements to differ materially from the future results, performance or achievements expressed in or implied by such forward-looking statements. Numerous risks, uncertainties and other factors may cause actual results to differ materially from those set out in the forward-looking statements, including general economic conditions and fluctuations in the global automotive market. For any forward-looking statements contained in this or any other document, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and we assume no obligation to update publicly or revise any forward-looking statements in light of new information or future events, except as required by law.

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/veoneer/r/veoneer-and-volvo-cars-finalize-split-of-software-joint-venture-zenuity,c3146864

The following files are available for download:

https://mb.cision.com/Main/17380/3146864/1273222.pdf

Press release (PDF)

 

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SOURCE Veoneer

FAQ

What was the recent development regarding Veoneer and Zenuity?

Veoneer has finalized the split of its software joint venture, Zenuity, with Volvo Cars, enhancing its software team.

How many software engineers did Veoneer acquire from the Zenuity split?

Veoneer acquired approximately 200 software engineers from the split.

What are the expected savings for Veoneer after splitting Zenuity?

Veoneer expects annual savings of around $30 million to $40 million from the Zenuity split.

What financial benefit did Veoneer receive from the Zenuity split?

Veoneer received $15 million in cash as part of the Zenuity split transaction.

What focus area will Veoneer enhance after the split of Zenuity?

Veoneer will enhance its focus on the development of advanced driver assistance systems (ADAS).