Canadian mobility technology company Magna International is acquiring its Swedish-based rival Veoneer for $3.8 billion in cash, Kallanish reports.

The merger deal announced on Friday will create a global leader in advanced driver assistance systems (ADAS). It builds on Magna’s strengths and gives the company access to new customers and regions, including Asia.

Magna will pay $31.25/share in cash. The transaction, subject to Veoneer’s shareholders and regulatory approvals, is expected to close at the end of the year. Once it’s all cleared, Magna plans to operate Veoneer’s Arriver sensor perception and drive policy software platform as an independent business unit, consistent with current practice. The rest of the acquired company will be combined with Magna’s existing ADAS business and integrated into Magna’s electronics operating unit.

“We expect the combined entity to be an industry leader in active safety solutions, to enhance its position in complete ADAS systems, and to be well-positioned for the transition towards higher levels of autonomy,” says Magna’s ceo Swamy Kotagiri.

Magna and LG Electronics announced last December a $1 billion joint venture to manufacture e-motors and other components to support vehicle electrification. The Canadian auto supplier will also produce the first EV from start-up Fisker via its automotive contract manufacturer Magna Steyr.