PITTSBURGH – Wabtec Corporation (NYSE: WAB) has completed the acquisition of Austria’s Frauscher Sensor Technology Group GmbH, a global leader in advanced railway sensing and signaling, for an enterprise value of €675 million in cash, the companies announced today.
The deal significantly expands Wabtec’s Digital Intelligence portfolio by adding Frauscher’s complementary train detection, axle counting, and wayside object control systems. This technology provides critical data to rail operators aiming to enhance network safety, capacity, and efficiency.
“Strategic acquisitions like Frauscher are key to our long-term growth, creating value for customers and shareholders,” said Wabtec President and CEO Rafael Santana. “Combining our digital portfolio with Frauscher’s leading products unlocks opportunities in the high-potential signaling market.”
Founded in 1987, Frauscher employs over 700 people across 15 countries and has installations in more than 100 nations. Its strong footprint in Europe and India will accelerate Wabtec’s international growth strategy.
“The fusion of our technologies will deliver innovative solutions for operators worldwide facing rising transportation demands,” said Nalin Jain, President of Wabtec’s Digital Intelligence Group. “This strengthens our role in driving the industry’s digital transformation.”
The acquisition is expected to be immediately accretive to shareholder value. Frauscher is projected to generate approximately €145 million in revenue in 2025. The purchase price represents a multiple of 12.4x projected 2025 EBITDA, adjusted for anticipated cost synergies to be realized within three years.
Wabtec expects the transaction to be accretive to Adjusted EBIT margins and slightly accretive to Adjusted EPS in the first full year, with accretive return on invested capital over time.
About Wabtec
Wabtec Corporation is a global leader in equipment, systems, and digital solutions for freight and transit rail, and other transportation industries. With over 155 years of experience, Wabtec is focused on building a sustainable rail network worldwide. www.wabteccorp.com.
About Frauscher
Frauscher Sensor Technology Group is a pioneer in axle counting and wheel detection solutions, supporting system integrators and railway operators globally with innovative products and lifecycle support.