Sunday, June 2, 2024 Hitachi Rail completed its acquisition of the Ground Transportation Systems (GTS) business from Thales for €1,660 million. This strategic move not only expands Hitachi Rail’s operations across 51 countries but also significantly shifts its revenue focus towards the more lucrative signalling and systems sector. Following this acquisition, Hitachi Rail has become a leader in the global mobility industry, emphasizing its commitment to promoting sustainable public transportation solutions facilitated by digital technologies.
This acquisition marks a pivotal moment in Hitachi Rail’s growth strategy, enhancing its services to both existing and prospective customers transitioning to eco-friendly transport options. The transaction boosts Hitachi Rail’s revenue to over ¥1 trillion annually, with the combined revenues of the newly expanded business reaching approximately €7.3 billion (¥1.
1 trillion; USD $7.9 billion) for the fiscal year 2023. This deal not only furthers organic growth but also rebalances the company’s earnings, with about 60% of its profits now derived from its high-return signalling and systems activities.
This division now oversees more than 26,000km of mainline railways and 4,600km of urban metros globally. The integration of GTS brings strategic geographical advantages, adding significant centers in Germany, France, Spain, and Canada to Hitachi Rail’s already established presence in Japan, Italy, the UK, and the US. This expansi.
