Wabtec Corporation has announced a definitive agreement to acquire Frauscher Sensor Technology Group GmbH, a global leader in train detection, axle counting systems, and wayside object control solutions. The move is set to significantly strengthen Wabtec’s Digital Intelligence business and expand its presence in the fast-growing railway signalling market.
The acquisition, valued at EUR 675 million in cash, positions Wabtec for accelerated growth and enhanced profitability, bolstering its capabilities in safety-critical rail technologies. Based in Austria, Frauscher is renowned for its innovative sensor systems and strong market presence, particularly in Europe and India.
“This strategic acquisition enhances Wabtec’s current Digital Intelligence portfolio, our opportunities in a high potential market, and aligns with our Company’s long-term growth strategy,” said Rafael Santana, President and CEO of Wabtec. “Frauscher has an industry leading portfolio that offers a rare combination of innovative technology, sustained growth, and strong and resilient profitability.”
The deal is expected to provide immediate value to Wabtec shareholders. The company forecasts that the acquisition will be accretive to adjusted earnings per share and adjusted EBIT margins in the first year of ownership, with return on invested capital (ROIC) increasing over time. The transaction reflects an estimated multiple of 12.4x projected 2025 EBITDA, adjusted for anticipated cost synergies expected to be realised within three years.
Frauscher is projected to generate approximately EUR 145 million in revenue in 2025, with growth expected to exceed Wabtec’s average over the next five years. The transaction remains subject to customary closing conditions and regulatory approvals.
“Frauscher is a strong addition to the Digital Intelligence business, with a complementary product portfolio that supports our vision of maximising the safety, efficiency, and capacity of the global rail network,” said Nalin Jain, President of Wabtec’s Digital Intelligence Group. “By combining our businesses, we will be able to deliver safety-critical insights through customised systems combining sensors with software and analytics, along with a comprehensive lifecycle services suite.”
He added: “Given Frauscher’s significant presence in Europe and India, this acquisition will further strengthen our international growth strategy in these large markets.”
Frauscher’s technologies are widely deployed in both conventional and high-speed rail, providing critical infrastructure support and enabling enhanced data-driven railway operations. The integration of Frauscher into Wabtec’s Digital Intelligence portfolio is aligned with the company’s vision of delivering innovative, data-enabled solutions to improve safety, reliability, and network capacity for global rail operators.
By expanding its capabilities in advanced signalling and sensing systems, Wabtec aims to provide operators with greater visibility and control across rail networks worldwide.