Hitachi finalizes the acquisition of Thales GTS for EUR 1.7 billion | News

INTERNATIONAL: Hitachi Rail announced after the close of trading on May 31 that it has completed the acquisition of the Thales Ground Transportation Systems business for €1.66 billion.

Hitachi said the deal would expand its global rail presence to 51 countries, with 60% of its revenue now coming from its signaling, train control and digital systems business, which provides higher returns. The combined company will have revenues of €7.3 billion at 2023 prices. The deal also gives Hitachi greater access to specialist expertise in digital operations, cybersecurity technology and ticketing.

As part of the antitrust terms of the takeover, Hitachi is required to divest its mainline signaling business units in France, Germany and the United Kingdom. In January, it signed a put option with MerMec setting out the terms of sale of these divisions to the Italian group.

In the future, the company will operate under the Hitachi Rail brand. According to Hitachi, the former Thales business unit has key bases in Germany, France, Spain and Canada, which will strategically complement Hitachi Rail’s operations centered in Italy, the US and the UK.

The closure means the transfer of 9,000 employees, bringing Hitachi Rail to 24,000 employees worldwide. The company is acquiring five GTS digital centers and competence centers in Toronto, Berlin, Manchester, Singapore and Paris, which will be part of Hitachi Rail’s global Agile Innovation team.

Giuseppe Marino, Group CEO of Hitachi Rail, said that “the completion of this transaction is a historic moment for our company.” Hitachi Rail’s expanded global reach and accelerated innovation is the beginning of an exciting new chapter that will deliver greater value and growth in new markets.

“With Thales’ Ground Transport Systems team on board, we can better ensure the transition to sustainable mobility for the world’s best transport companies. By combining our teams, our engineering capabilities will almost double, meaning faster innovation and more advanced technology solutions for our customers.”

Read an exclusive interview with Giuseppe Marino when he started as CEO of Hitachi Rail in June 2023.