The “Automotive Solutions” business that Autoliv intends to acquire is a carve-out of the automotive business of MACOM. The company is known for its high-performance analog RF, microwave, millimetre wave and photonic semiconductor products.
MACOM’s Automotive Solutions business supplies integrated, embedded 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 RF and antenna products (hardware and software) as well as Electronic Horizon, 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 CEO Jan Carlson.
The purchase price for MACOM’s 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.