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Siemens has entered into an agreement to acquire Invensys Rail, the rail automation business of Invensys for about €2.2 billion.
At the same time, the company plans to divest its baggage handling, postal and parcel sorting activities. Both transactions are part of the recently launched ‘Siemens 2014’ company programme, which is aimed at strengthening the company’s core activities.
With revenues of about £800 million, Invensys Rail is a leading software-based rail signalling and control company. The acquisition will expand Siemens’ presence in the growing global rail automation market.
“We are exiting non-core business with limited synergy potential while strengthening a resilient and high return business by combining two organisations with similar cultures and attractive synergy potential. The combined business will ensure profitable growth opportunities worldwide for the Siemens Infrastructure & Cities Sector,” said Roland Busch, Chief Executive Officer of Siemens Infrastructure & Cities.
The transaction is subject to Invensys’ shareholders’ approval and regulatory clearances.
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