Hitachi says it has agreed to acquire Thales’ Ground Transportation Systems (GTS) business for about €1.66 billion (£1.41 billion).
The final purchase price will be confirmed later, and the sale of the rail signalling and train-control systems business will likely be completed late in the 2022 financial year.
Hitachi said employee representatives of Hitachi Rail and Thales would be “informed and consulted” and that it intended to “promote the conditions for a smooth and successful integration of the business”.
In the financial year ending 2020, Thales GTS generated €1.6 billion of revenue. It employs about 9,000 staff in 42 countries and has headquarters in Germany, France and Canada.
Chief executive officer of Hitachi Rail, Andrew Barr, said: “Today’s announcement marks an exciting opportunity for the teams at Hitachi Rail and Thales’ Ground Transportation Systems business to create new value for our customers, cities and passengers around the world. Not only will we grow the reach of our core signalling capabilities as part of our turnkey offering, but we are also bringing together our digital and Mobility as a Service capabilities.
“The strong teams, customer relationships and technologies at GTS will help us grow to become a major player, further enabled by Lumada and the digital engineering of our teams at GlobalLogic and the broader Hitachi Group.”
Philippe Keryer, executive vice president of strategy, research and technology at Thales, said: “After discussions with key market players, Thales has selected the best industrial partner to ensure a successful long term development of its ground transportation business.
“This move is creating significant value for our clients, employees and shareholders and enables Ground Transportation Systems to be at the forefront of growth in sustainable mobility.”