Wabtec has signed a definitive agreement to acquire Frauscher Sensor Technology Group, a provider of train detection and axle counting systems, for €675m ($794.6m) in cash.
This acquisition aims to strengthen Wabtec’s Digital Intelligence business by integrating Frauscher’s railway signalling technologies.
Frauscher specialises in tailored solutions for axle counting and wheel detection, serving system integrators and railway operators globally.
The company is projected to generate €145m in revenue in 2025, with growth expected to surpass Wabtec’s average growth rate over the next five years.
Wabtec Digital Intelligence Group president Nalin Jain said: “By combining our businesses, we will be able to deliver safety-critical insights through customised systems combining sensors with software and analytics, along with a comprehensive lifecycle services suite.
“Given Frauscher’s significant presence in Europe and India, this acquisition will further strengthen our international growth strategy in these large markets.”
The acquisition is anticipated to strengthen Wabtec’s presence in the railway signalling sector, aligning with its objectives of fostering innovation and productivity.
It will also help enhance safety and reliability for customers while protecting essential assets and infrastructure globally, according to the company.
Wabtec president and CEO Rafael Santana said: “This strategic acquisition enhances Wabtec's current Digital Intelligence portfolio, our opportunities in a high potential market, and aligns with our Company's long-term growth strategy.
“Frauscher has an industry leading portfolio that offers a rare combination of innovative technology, sustained growth, and strong and resilient profitability.”
The transaction is subject to standard closing conditions and regulatory approvals.
Recently, Wabtec acquired Evident’s Inspection Technologies division for $1.78bn.
This acquisition is said to boost Wabtec's Digital Intelligence business and expand its total addressable market from $8bn to an estimated $16bn.
