Wabtec Corporation (NYSE: WAB) has announced a definitive agreement to acquire Evident’s Inspection Technologies division. The division, formerly part of the Scientific Solutions Division of Olympus Corporation, is recognized globally for its industry-leading technologies in Non-Destructive Testing, Remote Visual Inspection, and Analytical Instruments solutions for mission-critical assets.

The acquisition is set to significantly enhance Wabtec’s Digital Intelligence business, positioning the company for accelerated growth and reinforcing its commitment to customer productivity, reliability, and safety. Inspection Technologies brings a 50-year legacy of innovation and serves a global customer base through a distributed sales force and engineering and production facilities in North America and Japan, employing over 1,300 team members.

“This acquisition aligns with our growth strategy to innovate scalable technologies, increase our installed base, expand high-margin recurring revenues, and drive operational performance,” said Rafael Santana, President and CEO of Wabtec. “We are excited to partner with Evident’s talented team to enhance our market presence and drive profitable growth,” added Nalin Jain, President of Wabtec’s Digital Intelligence Group.

The integration of Inspection Technologies will expand Wabtec’s capabilities, adding advanced automated inspection capabilities and driving technology in data acquisition, analytics, and automation. Karen Smith, Executive Vice President of Evident Inspection Technologies, highlighted the potential of combining their expertise to develop intelligent monitoring solutions for various industries.

Inspection Technologies is projected to achieve approximately $433 million in revenue for 2024, with an EBITDA of $112 million, translating to a margin of 25.9%. The division’s stable revenue base is bolstered by a recurring revenue stream of about 68%.

The acquisition deal, valued at $1.78 billion, subject to adjustments, is expected to close by the first half of 2025, pending regulatory approvals. This transaction is anticipated to deliver immediate shareholder value, with a projected revenue growth outlook and accretive financial metrics.

This strategic move will effectively double Wabtec’s total addressable market from $8 billion to $16 billion, expanding its reach and enhancing its ability to deliver innovative solutions on a global scale.

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