Siemens to acquire Invensys Rail for $2.8 billion (11/29/2012)
11/29/2021Siemens AG has entered into an agreement to acquire Invensys Rail for about $2.8 billion. The transaction, which is subject to Invensys shareholder approval and regulatory clearances, is projected to close in second-quarter 2013.
Siemens plans to integrate Invensys Rail — a software-based rail signaling and control company — into its Rail Automation business unit in the Infrastructure & Cities sector's Mobility and Logistics Division. Siemens and Invensys Rail managers would form a new management team, retaining Invensys Rail's local expertise and business relationships.
The acquisition will expand Siemens' presence in the growing global rail automation market, Siemens officials said in a prepared statement. Invensys Rail has a strong footprint in the United States, United Kingdom, Spain and Australia, and will extend Siemens' rail automation presence in countries such as Germany, Austria, Switzerland, China and India, they said.
"With the addition of Invensys Rail we are in an excellent position to offer best-in-class solutions and technology to rail operators worldwide. The combination of two excellent organizations will create a truly global player in the rail automation business," said Sami Atiya, chief executive officer of Siemens' Mobility and Logistics Division.
The acquisition is part of a "Siemens 2014" initiative, which also calls for divesting the company's baggage handling, postal and parcel sorting businesses.
Source: Progressive Railroading Daily News