A major player in train control systems, Knorr-Bremse, has announced the acquisition of a portion of Alstom’s business in North America specializing in railway automation and telemechanics (RAT), this is reported by the railway transport news portal Railway Supply.

Knorr-Bremse acquires part of Alstom's business
Photo: Alstom

The deal is valued at 630 million euros and is expected to be completed in the summer of 2024.

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According to preliminary results, Alstom Signaling North America achieved revenue of 300 million euros with an operating margin of around 16% in the financial year 2023, ending in March 2024.

This allows the company to maintain its leading position in North America, with a significant lead over competitors in the field of centralized systems and track signaling.

For Knorr-Bremse, this acquisition opens doors to digital technologies, providing access to data on railway infrastructure. This data will serve as the foundation for providing various digital services to customers.

The deal is expected to significantly strengthen the company’s position in the RAT market, estimated at 20 billion euros.

As per the BOOST 2026 strategy, Knorr-Bremse intends to expand its capabilities as a system solutions provider for rolling stock in rail transport as a whole, including work with railway infrastructure. This strategic development will help the company establish stronger positions in the global market.

Commenting on the deal, Alstom representatives noted that it will improve the company’s investment rating and reduce debt by up to 2 billion euros.

The new opportunities and resources available as a result of this deal will be a powerful driver for the development of both companies in the future.

Photo: Alstom

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