Pittsburgh-based Wabtec Corp., a provider of equipment, systems, digital solutions and value-added services for the freight and transit rail industries, recently completed its purchase of Austria-based Frauscher Sensor Technology Group GmbH, a train detection, wayside object control solutions, and axle counting systems company, for $787.4 million in cash.
The purchase will strengthen Wabtec’s Digital Intelligence portfolio by adding complementary railway signaling technologies that are expected to facilitate accelerated and profitable growth. The purchase also will allow Wabtec to further penetrate into the railway signaling market, especially in Europe and India.
“This strategic acquisition is another step in executing Wabtec’s long-term growth strategy, which will provide enhanced value for our customers, shareholders, and employees,” Rafael Santana, Wabtec President and CEO, said. “The rare combination of our Digital Intelligence portfolio and Frauscher’s industry leading suite of products opens opportunities in a high-potential market for sustained growth, and strong and resilient profitability.”
Frauscher specializes in train detection and wayside object control solutions that provide information to rail operators to increase safety, efficiency and capacity. It has a significant presence in Europe and India and has installations in more than 100 countries in a wide range of technical, mechanical, and environmental conditions. The company employs more than 700 people in 15 countries.