Thales to sell its GTS business to Hitachi for €1.66 billion
Thales and Hitachi Rail announce today that they are entering into exclusive negotiations on the sale of Thales’s Ground Transportation Systems Global Business Unit (GTS) for an enterprise value of EUR 1.66 billion.
With around 9,000 employees at the end of 2020, Ground Transportation Systems is a major player in Rail Signaling and Train Control Systems, Telecommunications and Supervision systems and Fare collection solutions, key technologies for a more sustainable mobility. “With this major strategic move, we will be able to focus on the development of our 3 high-tech long-term growth businesses, each of them able to sustainably deliver double-digit margins -- Aerospace, Defense & Security, and Digital Identity & Security -- further strengthening their best-in-class market position,” Patrice Caine, Chairman and CEO, Thales in a press release. The completion of the transaction will require the carve-out of the business in several countries, and is subject to usual conditions including regulatory and antitrust clearances. It is expected to close by the end of calendar year 2022 / early in calendar year 2023. Employee representatives of both Thales and Hitachi Rail will be informed and consulted on this project according to the laws of involved countries. “Today’s announcement marks an exciting opportunity for the teams at Hitachi Rail and Thales’s Ground Transportations Systems business to create new value for our customers, cities and passengers around the world. Not only will we grow the reach of our core signaling capabilities as part of our turnkey offering, but we are also bringing together our digital and MaaS capabilities,” says Andrew Barr, Chief Executive Officer, Hitachi Rail.