Thales enters into agreement in view of selling its Ground Transportation Systems business to Hitachi Rail
04/08/2021
Entry into exclusive negotiations with Hitachi Rail on the sale of Ground Transportation Systems business, for an enterprise value of 1,660 million
Compelling valuation reflecting effective turnaround
Reinforcement of Thaless strategic focus on 3 long-term growth markets: Aerospace, Defense & Security, Digital Identity and Security, driving accelerated EBIT margin accretion and further deleveraging
Combined GTS and Hitachi Rail business to be positioned as a global leader in the rail signaling market
Employee representative bodies of both Thales and Hitachi Rail are being consulted on this project, which is also subject to usual closing conditions
Thales (Euronext Paris: HO) and Hitachi Rail announce today that they are entering into exclusive negotiations on the sale of Thales's Ground Transportation Systems Global Business Unit ( Ground Transportation Systems or GTS ) for an enterprise value of 1,660 million.
With around 9,000 employees at the end of 2020, Ground Transportation Systems is a global leader in Rail Signaling and Train Control Systems, Telecommunications and Supervision systems and Fare collection solutions, key technologies for a more sustainable mobility. Around 8 billion passengers benefit from GTS's rail technologies every year.
Thanks to the engagement of GTS employees and, more globally, of Thales's management team, the business achieved a remarkable turnaround over the past 5 years, delivering in 2020 and H1 2021 its best financial performance of the past 7 years, in spite of the Covid-19 crisis.
Thanks to the strong technical, geographical and commercial complementarities between Hitachi Rail and Ground Transportation Systems, the combination will create a leading rail signaling provider with a broader product offering and stronger capabilities to meet customer demand around the world. In addition, it will offer GTS's employees enhanced professional opportunities. The combined strength of Hitachi and GTS's digital expertise will also help Hitachi Rail to accelerate its Mobility as a Service ( MaaS) offering.
Through this transaction, Thales reinforces its strategic focus on 3 long-term high technology growth markets: Aerospace, Defense & Security, and Digital Identity & Security. Each of its businesses is an industry leading pure player focused on intelligent systems and digital solutions, able to sustainably deliver double-digit EBIT margins. This move enables the Group to now target an EBIT margin of 12% in the medium-term.
The transaction will also strengthen Thales's balance sheet and provide substantial cash optionality.
After discussions with key market players, Thales has selected the best industrial partner to ensure a successful long term development of its ground transportation business. This move is creating significant value for our clients, employees and shareholders, and enables Ground Transportation Systems to be at the forefront of growth in sustainable mobility. - Philippe Keryer, EVP Strategy, Research & Technology, Thales
With this major strategic move, we will be able to focus on the development of our 3 high-tech long-term growth businesses, each of them able to sustainably deliver double-digit margins -- Aerospace, Defense & Security, and Digital Identity & Security -- further strengthening their best-in-class market position. - Patrice Caine, Chairman and CEO, Thales
Today's announcement marks an exciting opportunity for the teams at Hitachi Rail and Thales's Ground Transportations Systems business to create new value for our customers, cities and passengers around the world. Not only will we grow the reach of our core signaling capabilities as part of our turnkey offering, but we are also bringing together our digital and MaaS capabilities. The strong teams, customer relationships and technologies at GTS will help us grow to become a major player, further enabled by Lumada and the digital engineering of our teams at GlobalLogic and the broader Hitachi Group. - Andrew Barr, Chief Executive Officer, Hitachi Rail
Updated 2021 financial outlook Since the transport segment will be treated as discontinued operations in the 2021 financial statements, Thales's 2021 financial outlook is updated as follows:
As in 2019 and 2020, a book-to-bill ratio above 1;
Sales in the range of 15.8 billion to 16.3 billion;
An EBIT margin in the range of 9.8% to 10.3%, up 180 to 230 basis points from 2020.
Next steps Employee representatives of both Thales and Hitachi Rail will be informed and consulted on this project according to the laws of involved countries.
The completion of the transaction will require the carve-out of the business in several countries, and is subject to usual conditions including regulatory and antitrust clearances. It is expected to close by the end of calendar year 2022 / early in calendar year 2023.
Deal background
Scheme: 100% acquisition of Ground Transportation Systems business by Hitachi Rail following carve-out from Thales, subject to approvals from employee representatives and relevant regulatory bodies
Price: Enterprise Value of 1,660 million ( 215bn), corresponding to an implied valuation of 13.8x EV/EBIT, based on reported H2 2020-H1 2021 segment EBIT. The final purchase price will be determined after customary adjustments for net working capital and net debt based on actual amounts at the closing date.
Source of funds: Paid by cash at hand at closing
Offer approved by both Thales's and Hitachi's Boards of Directors
Transaction advisors: In connection with the transaction, Lazard acted as financial advisor to Thales, and BDGS, Baker McKenzie and August Debouzy acted as legal counsels.
****
This press release contains inside information as per the definition of article 7 of EU regulation No. 596/2014. It c
LINK: | https://www.thalesgroup.com/en/group/journalist/press-release/thales-e... |
See more stories from thales |
Most recent headlines
04/08/2024
Dalet Appoints Santiago Solanas as CEO to Lead Next Era of Growth and Innovation
Dalet, a leading technology and service provider for media-rich organizations, is excited to announce Santiago Solanas as its new Chief Executive Officer (CEO)....
03/06/2024
Dalet and Veritone Reach Agreement to Distribute, Transact and Monetize Media Archives
Dalet, a leading technology and service provider for media-rich organizations, a...
06/05/2024
Gathering Is a Call to Action: A Letter From Ilyse McKimmie
By Ilyse McKimmie Now, more than ever That's a phrase so often used in the last few years that I've come to dread seeing it in notes like this one. A...
06/05/2024
From Petabytes To Exabytes: The Future Of Shared Storage
alt= class=wp-image-12099 data-lazy-src=/wp-content/uploads/2024/05/Blog-Exabyte-Storage-Demand-960x540-1.jpg/> Demand for storage solutions has reached unprece...
06/05/2024
Spotify Uplifts Bold, Emerging Artists in Honor of Asian and Pacific Islander Heritage Month
Around the world, Asian and Pacific Islander (API) artists continue to impact mu...
06/05/2024
Never Miss a New Release With Countdown Pages for Audiobooks
Spotify is making it easier for booklovers to count down the days, hours, minutes, and seconds until a new audiobook releases. With Countdown Pages for audioboo...
06/05/2024
Get Ready to join Dan Hong as he hits the streets in his ultimate culinary journey
Get Ready to join Dan Hong as he hits the streets in his ultimate culinary journ...
06/05/2024
Lighting a Day-Interior Caf With LEE Filters
In this video, cinematographer Simon Rowling welcomes viewers behind the scenes as he lights a daytime-interior scene inside a coffee shop. Shooting on Panavisi...
06/05/2024
Technology for the Next Generation of Special Forces
L3Harris is well positioned to support the complex and multifaceted nature of special operations forces in all domains through our agile and responsive technolo...
06/05/2024
Canada Plans May 8 Public Alert System Test
OAKVILLE, Ontario As part of Emergency Preparedness Week, Alert Ready, Canadas national public alerting system, will be distributing a test alert to Canadians i...
06/05/2024
Survey: Pay TV Penetration Falls to 40% in U.S. Hispanic Homes
NEW ROCHELLE, N.Y. Horowitz Research has released a new study on the viewing and media habits of U.S. Hispanic/Latine audiences that shows a dramatic decline in...
06/05/2024
RE:Vision Effects Autograph 2024.4 released! 50% Off Through May 9th
RE:Vision Effects Autograph 2024.4 released! 50% Off Through May 9th Brie Clayton May 6, 2024 0 Comments New game-changing motion graphics & VFX featu...
06/05/2024
NBC Orders More Night Court'
NBC has renewed Night Court for a third season. The courtroom comedy was on the network from 1984 to 1992, and NBC rebooted it in early 2023....
06/05/2024
ABC Shares Summer Premiere Dates
ABC has revealed its summer schedule. The Bachelorette gets going Monday, July 8, with Jenn Tran the star in season 21. Celebrity Family Feud starts up Tuesday,...
06/05/2024
Holly Springs Salamanders Home Opener Less Than Three Weeks Away, Tickets on Sale Now
It's almost go-time for the Holly Springs Salamanders! The season opener is ...
06/05/2024
The Pros and Cons of Cloud, Hybrid, or On-Premises Radio Operations
For years, radio stations have used on-premises servers to broadcast content and manage automation, traffic, and billing systems. As technology continues to adv...
06/05/2024
AI and Big Data Take the Centre Stage in Central Asia at Beetech 2024 Hosted by Beeline Kazakhstan and QazCode
06 May 2024 AI and Big Data Take the Centre Stage in Central Asia at Beetech 20...
06/05/2024
FIRST LOOK AT JIM PARSONS & MAYIM BIALIK REPRISING THEIR ROLES FROM THE BIG BANG THEORY ON THE SERIES FINALE OF YOUNG SHELDON, MAY 16 ON CBS!
FIRST LOOK AT JIM PARSONS & MAYIM BIALIK REPRISING THEIR ROLES FROM THE BIG BAN...
06/05/2024
NBC Sports and Churchill Downs Extend Historic Partnership, Kentucky Derby to Be Presented on NBC and Peacock Through 2032
NBC Sports and Churchill Downs Extend Historic Partnership, Kentucky Derby to Be...
06/05/2024
Beverly Hills Aerials, LIV Golf Make Australian-Broadcast History by Flying Live Drones Over People in Adelaide
Beverly Hills Aerials, LIV Golf Make Australian-Broadcast History by Flying Live...
06/05/2024
Watch the Trailer for 'A Part of You' - Felicia Maxime, Edvin Ryding and Zara Larsson in Leading Roles
Back to All News Watch the Trailer for A Part of You - Felicia Maxime, Edvin Ry...
06/05/2024
FOR-A to focus on Ultra HD at Broadcast Asia
Leadership in 12G-SDI for low impact migration to 4k production...
06/05/2024
STATEMENT CONCERNING EUTELSAT GROUP'S GROUND NETWORK
Press release - 6 May 2024 07:31 STATEMENT CONCERNING EUTELSAT GROUP'S GROUND NETWORK Facebook LinkedIn Twitter Download as PDF Paris, 06 May 2024 ...
06/05/2024
Explore Broadcast Pix's Latest Innovations at InfoComm 2024
Tyngsboro, Mass. - May 6, 2024 - Join us at InfoComm 2024 to experience the latest advancements in live production technology. From June 12-14, 2024, at the Las...
06/05/2024
2024-05-06
To champion global movements to protect and advance equality for LGBTQ+ communities, Apple is introducing a new Apple Watch Pride Edition Braided Solo Loop, ava...
06/05/2024
Actress Matseliso Mohale has joined Muvhango'
Actress Matseliso Mohale has joined Muvhango'Talented actress Matseliso Mohale has joined SABC2's soapie Muvhango' as Vhangani's lover and a c...
06/05/2024
Tonight on Smoke and Mirrors: Leroy refuses to give up fighting to bury Mthetho
Tonight on Smoke and Mirrors: Leroy refuses to give up fighting to bury MthethoDon't miss Monday, 6 May's riveting episode of South African soapie Smoke...
06/05/2024
NVIDIA and Alphabet's Intrinsic Put Next-Gen Robotics Within Grasp
Intrinsic, a software and AI robotics company at Alphabet, has integrated NVIDIA AI and Isaac platform technologies to advance the complex field of autonomous r...
06/05/2024
A Mighty Meeting: Generative AI, Cybersecurity Connect at RSA
Cybersecurity experts at the RSA Conference this week will be on the hunt for ways to secure their operations in the era of generative AI. They'll find man...
06/05/2024
SES to acquire Intelsat: Investor Relations Frequently Asked Questions
1) What is the rationale of the transaction? What is the benefit for SES shareholders? This combination creates a stronger and more competitive multi-orbit ope...
05/05/2024
Singer Becky G To Close Out TelevisaUnivision's Upfront
A special evening performance by multiplatinum singer Becky G will provide a memorable conclusion to TeievisaUnivision's Casa Cultura upfront event on May 1...
05/05/2024
Publicis Won't Use Nielsen's Big Data as Currency in This Upfront
Giant media buyer Publicis is telling network sales executives that it does not think Nielsen's new panel-plus-big-data currency is ready for this upfront....
05/05/2024
Glenn Kirschner, NBC News Legal Analyst, Rips Media Coverage of Trump Trial
WASHINGTON Glenn Kirschner, legal analyst at NBC News, blasted the media for referring to the New York trial of former President Donald Trump as a hush-money ...
05/05/2024
Catchy Comedy Marathons The Beverly Hillbillies' May 4-5
Catchy Comedy's weekend marathon sees The Beverly Hillbillies on the weekend of May 4-5. The event kicks off Saturday, May 4 at 11 a.m. ET, and runs through...
05/05/2024
How NBC Sports Plans to Cover Kentucky Derby
NBC Sports has the 150th Kentucky Derby Saturday, May 4. The coverage begins at 2:30 p.m. ET on NBC and Peacock and the feature race at Churchill Downs in Louis...
05/05/2024
Netflix Announces New Comedy Series 'Roosters', Starring Jeroen Spitzenberger, Waldemar Torenstra, Andr Dongelmans and Benja Bruijning
Back to All News Netflix Announces New Comedy Series Roosters, Starring Jeroen ...
05/05/2024
Showdown Alert: Baki Hanma VS Kengan Ashura' Drops Electrifying Trailer for June 6 Debut
Back to All News Showdown Alert: Baki Hanma VS Kengan Ashura' Drops Electr...
04/05/2024
Nielsen: Asian American Audiences Spend as Much Time on Mobile as TV
NEW YORK As the Asian Pacific American Heritage Month kicks off in May, Nielsen has released an extensive new report diving into their media habits with data sh...
04/05/2024
Comcast Makes $1M Commitment to Military-Serving Nonprofits
PHILADELPHIA As National Military Appreciation Month gets underway, Comcast has announced several new initiatives to help veterans, service members, and their f...
04/05/2024
FCC Unveils Agenda for May Open Meeting
WASHINGTON, D.C. Federal Communications Commission chairwoman Jessica Rosenworcel has announced a tentative agenda for the May Open Commission Meeting scheduled...
04/05/2024
Enhancements Made to Key 5G Convergence Standards
The Broadband Forum has announced major enhancements to key 5G convergence standards that the group said will help advance next-generation applications, improve...
04/05/2024
Spotify Wrapped Campaign Spot Graded With DaVinci Resolve Studio
Spotify Wrapped Campaign Spot Graded With DaVinci Resolve Studio Brie Clayton May 3, 2024 0 Comments Blackmagic Design today announced that Colorist M...
04/05/2024
Three Boston Conservatory at Berklee Alums Nominated for Tony Awards
Three Boston Conservatory at Berklee Alums Nominated for Tony Awards An additional eight alums and two current students performed in nominated productions. ...
04/05/2024
New faces and new storylines': What to expect on Izingane ZeS'thembu' S2
New faces and new storylines': What to expect on Izingane ZeS'thembu...
03/05/2024
Sudan: New WhatsApp Course Equips Journalists to Report on Conflict Related Sexual Violence
An innovative learning tool to help media and civil society better understand ho...
03/05/2024
Slow Explores an Unusual Relationship With Sincere Romance
PARK CITY, UTAH - JANUARY 21: (L-R) Actors K stutis Cic nas and Greta Grinevi i t , Director Marija Kavtaradze and Producer Marija Razgute attend the 2023 Sunda...
03/05/2024
Be Honest With Your Art': Danny Ocean Reflects on Sudden Stardom and His Deeply Personal New Album
If you aren't familiar with Danny Ocean's music, it's only a matter ...
03/05/2024
Spotify and ELLE Collaborate in Celebration of Emerging Women in Music
Spotify has an unwavering commitment to supporting emerging artists across all genres, to helping them launch and thrive in their careers, and to connecting the...
03/05/2024
La Msica Mexicana no es solamente un fenmeno en Mxico y Estados Unidos, tambin en toda Amrica Latina
Como uno de los sonidos de mayor expansi n en el mundo, la M sica Mexicana va m ...