Global technology company ABB has agreed to purchase PowerTech Converter (PTC), a German supplier of auxiliary power converters and aftermarket services for the railway industry.
The deal, whose value was not shared, is expected to help ABB expand market access for its Traction division.
ABB Motion president Tarak Mehta said: “Through the acquisition, ABB will expand its strong presence in the rail segment and will be better positioned to seize growth opportunities resulting from increasing industry demand for sustainable transport solutions.”
Owned by German investor Radial Capital Partners (RCP), PowerTech Converter has facilities in Holzkirchen, Germany and Mount Olive, US. The business is supported by a workforce of nearly 280.
The transaction, which awaits the approval of regulatory and anti-trust authorities, is scheduled to complete in the fourth quarter of this year.
ABB Traction division president Edgar Keller said: “PTC’s advanced portfolio, which includes PowerBriX with its silicon carbide (SiC) technology, is highly complementary to our own offering and will allow our Traction division to provide customers with one of the most comprehensive ranges of auxiliary power converters on the market.
“In addition, customers will benefit from additional technologies in the future, resulting from ABB and PTC’s combined efforts to innovate and develop more energy efficient solutions.”
Auxiliary converters are key part of rail vehicles. They are intended to supply power required for the rail’s vital systems including the HVAC system, lighting, safety equipment, doors, and charging of batteries.