Global technology company Voith and PCS Holding have announced plans to purchase a combined 59% stake in Traktionssysteme Austria (TSA).

The purchase contract was signed last month and the deal is expected to close in the second half of this year after receiving regulatory approvals and adhering to the closing conditions.

TSA manufactures electric motors, generators and transmissions for road and rail vehicles.

Voith Turbo president, CEO and corporate board of management member Uwe Knotzer said: “Voith is the technology leader in drive technology in many industries.

“The portfolio and market position of TSA are an excellent addition to our drive solutions in the rail and commercial vehicles sector and supports our position as a technology-independent supplier of drive systems.

“With the 60 years of experience of TSA, we will achieve a significant advantage for our customers in drivetrain electrification.”

PCS Holding CEO Oliver Streuli said: “This transaction will enable PCS Holding to secure top technology in the field of electric drive technology for its strategic investments in the long term.

“In addition, we expect the cooperation with Voith to provide decisive impulses for the development of new market potentials, especially in the road segment.”

With the finalisation of the deal, TSA will be owned by PCS Holding, the Voith Group and the previous shareholder Duswald GmbH and TSA MD Magister Robert Tencl.

This ownership structure will offer better access to markets, technologies and financing opportunities to TSA.

Previous co-owner Günter Eichhübl sold his shares and will serve as the managing director until 30 June.