- Wabtec Corporation (WAB, Financial) to acquire Frauscher Sensor Technology for €675 million.
- The acquisition is expected to be immediately accretive to Wabtec's financial metrics.
- Frauscher's revenue growth is projected to exceed Wabtec's average growth over the next five years.
Wabtec Corporation (WAB) has entered into a definitive agreement to acquire Frauscher Sensor Technology Group GmbH, a global leader in train detection, axle counting systems, and wayside object control solutions. The acquisition, valued at an enterprise price of €675 million in cash, is expected to reinforce Wabtec's Digital Intelligence business and aligns with the company's long-term strategic growth plans.
Frauscher, known for its innovative technology in the railway signaling market, is projected to generate approximately €145 million in revenue in 2025. The growth from Frauscher is expected to exceed Wabtec's average growth over the next five years, benefiting Wabtec's shareholders with accretive growth profiles and improved financial margins. Wabtec anticipates that the purchase will be accretive in terms of adjusted EBIT margins and EPS in the first year of ownership.
This acquisition will allow Wabtec to deliver enhanced safety-critical insights through systems that combine sensors, software, and analytics, and to expand its international growth strategy, particularly in Europe and India. The deal is subject to customary closing conditions and regulatory approvals.
Wabtec Corporation continues to revolutionize the rail industry as a leading provider of equipment and digital solutions for the freight and transit rail industries globally. Meanwhile, Frauscher Sensor Technology Group remains committed to delivering cutting-edge solutions for axle counting and wheel detection worldwide.
