The move, Wabtec said, will strengthen its Digital Intelligence business by adding complementary railway signaling technologies. It follows Wabtec’s $1.78 billion acquisition of Evident’s Inspection Technologies division (Inspection Technologies).
Founded in 1987, Frauscher has grown to more than 700 employees located in 15 countries, and has installations in more than 100 countries, according to Wabtec. The company also has a “significant presence in Europe and India,” which will enable Wabtec to “advance its international growth strategy in these key markets.”
The acquisition of Frauscher “is anticipated to provide immediate shareholder value with an accretive growth profile, accretive Adjusted EBIT margins, accretive Adjusted EPS in the first year of ownership, and accretive return on invested capital (ROIC) over time,” according to Wabtec. “The purchase price reflects an estimated multiple of 12.4x projected 2025 EBITDA adjusted for projected run-rate cost synergies, which Wabtec expects to be realized over a three-year period. Frauscher is expected to generate approximately €145 million of revenue in 2025.”
“This strategic acquisition is another step in executing Wabtec’s long-term growth strategy, which will provide enhanced value for our customers, shareholders, and employees,” Wabtec President and CEO Rafael Santana said Dec. 1. “The rare combination of our Digital Intelligence portfolio and Frauscher’s industry leading suite of products opens opportunities in a high-potential market for sustained growth, and strong and resilient profitability.”
“As the world’s rail network looks to meet the ever-growing transportation demands, the combination of our digital portfolio with Frauscher’s technology will provide operators innovative solutions to optimize their operations,” added Nalin Jain, President of Wabtec’s Digital Intelligence Group. “By combining our businesses, we will further strengthen Wabtec as an innovator in the rail industry’s digital transformation driving improved efficiency, reliability, and safety.”
Frauscher is the fifth Wabtec acquisition since November 2024. The company has also added Inspection Technologies, Fanox, Kompozitum, and Bloom Engineering to its portfolio.
Further Reading:
- Wabtec 3Q25: ‘Continued Growth in Backlog, Sales, Margin and Earnings’
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- Wabtec Lands $4.2B Kazakhstan Locomotive Contract
- Driving the Future of Rail: A Conversation With Wabtec’s Eric Gebhardt
- For Wabtec, ‘Another Strong Quarter’
- Watch: Wabtec’s Evolution Series Tier 4 Marks a Milestone
- Wabtec, IMT Enter Agreement to Distribute Railcar Telematics in European Markets
- Winter Weather Warm-Up
- Wabtec: ‘Strong’ 1Q25 Results, Full-Year EPS Guidance Increase
- Wabtec, ARTC Secure Agreement
