Hitachi Rail has officially aquired Thales’ Ground Transportation Systems (GTS) business, expanding its global presence to 51 countries.
The closing strengthens the company’s strategic focus on helping current and potential Hitachi Rail and GTS customers through the sustainable mobility transition – the shift of people from private to sustainable public transport, driven by digitalization.
“Completing this transaction is a historic moment for our business, as we expand to 51 countries and increase our revenues to €7.3billion (US$7.9 billion) globally [FY23 pro forma]," said Group CEO of Hitachi Rail Giuseppe Marino. "Hitachi Rail’s greater global reach and accelerated innovation is the start of an exciting new chapter that will deliver enhanced value and growth in new markets."
Through this divestment, Thales will be able to focus on three long-term high technology growth markets: Aeronautics and space, defense and security and cybersecurity an digital identity.
The deal will also advance a cycle of organic growth and acquisitions that will help Hitachi Rail achieve its annual revenue goal of more than ¥1 trillion (US$6.4 billion) with the business’ combined revenues growing to €7.3 billion (US$7.9 billion) FY23 pro-forma. It also supports the company’s profit growth by continuing the shift in its revenue profile, with the majority now coming from its higher-return signalling and systems division post-transaction (around 60 percent). The business’ signalling will operate more than 26,000km (16,156 miles) of mainline railway and 4,600km (2,858 miles) of urban metros around the world.
Hitachi Rail will welcome 9,000 additional colleagues with the acquisition, taking the business to 24,000 employees worldwide. The closing deal enhances the company’s full portfolio of transport solutions with expertise in rolling stock, urban turnkey railways, mainline digital signalling, freight signalling and communication and supervision systems.
The impact of the sale will be accounted for in Q2 24.
