Wabtec to strengthen digital intelligence with $1.8bn Evident deal
Wabtec Corporation has unveiled its plan to acquire Evident’s Inspection Technologies division, formerly part of Olympus Corporation’s Scientific Solutions Division. This $1.78 billion transaction underscores Wabtec’s strategy to enhance its portfolio of industrial inspection solutions, leveraging innovative technologies to expand its market share across rail, mining, and industrial sectors.
Evident’s Inspection Technologies is renowned for its advanced non-destructive testing (NDT), remote visual inspection, and analytical instruments designed for mission-critical asset monitoring. With these capabilities, Wabtec aims to strengthen its Digital Intelligence business, accelerate revenue growth, and enhance its presence in high-margin markets.
Expanding Digital Intelligence with Industrial Inspection Expertise
This acquisition doubles Wabtec’s total addressable market (TAM) from $8 billion to $16 billion, positioning the company for accelerated growth. The integration of Evident’s advanced inspection solutions complements Wabtec’s existing portfolio, driving innovation in industrial inspection technologies.
Evident’s Inspection Technologies has a global footprint, supported by four engineering and production facilities in North America and Japan. The division serves diverse markets, including maintenance, manufacturing, and environmental applications, with a revenue base expected to reach $433 million in 2024. Approximately 68% of this revenue stems from recurring sources, enhancing financial stability and predictability.
Leadership Emphasizes Strategic Alignment
Rafael Santana, President and CEO of Wabtec, highlighted the alignment of the acquisition with the company’s growth strategy. He noted that Evident’s cutting-edge technologies and talented team would strengthen Wabtec’s operational performance, expand its recurring revenue streams, and fuel innovation.
Nalin Jain, President of Wabtec’s Digital Intelligence Group, echoed this sentiment, emphasizing that the deal would unlock profitable growth and bolster Wabtec’s capabilities in delivering advanced inspection solutions. Karen Smith, Executive Vice President of Evident Inspection Technologies, expressed optimism about the combined potential of both companies to address evolving industry demands.
Financial and Operational Impact of the Acquisition
Wabtec has agreed to pay $1.78 billion for the acquisition, translating to an adjusted valuation of $1.68 billion after tax benefits. The purchase price reflects a multiple of 12.0x projected 2025 adjusted EBITDA, incorporating anticipated cost synergies of $25 million. The transaction is expected to be accretive to Wabtec’s earnings per share (EPS) and return on invested capital (ROIC) from the first year of ownership.
The deal’s financial impact goes beyond numbers. By integrating Evident’s expertise in NDT and inspection technologies, Wabtec gains a competitive edge in data acquisition, analytics, and automation—three critical pillars driving industrial innovation.
The Future of Industrial Inspection Solutions
The acquisition reflects a broader trend in industrial sectors toward integrating intelligent, automated inspection technologies. With this deal, Wabtec is poised to redefine how industries monitor and maintain mission-critical assets. Evident’s advanced portfolio will augment Wabtec’s capabilities in sectors like rail, mining, and marine while opening new opportunities in high-growth industries.
Wabtec has been at the forefront of technological advancements in rail and industrial markets for over 150 years. This acquisition aligns with its long-term vision of achieving a zero-emission rail system while enhancing productivity and reliability across global supply chains.
Anticipated Closing and Future Prospects
The acquisition is subject to customary closing conditions and regulatory approvals, with completion expected by mid-2025. As Wabtec integrates Evident’s Inspection Technologies division, it plans to leverage its engineering and software development expertise to deliver superior solutions to its customers.
This deal underscores Wabtec’s commitment to innovation and its focus on meeting the evolving needs of industries through scalable, cutting-edge technologies. With the addition of Evident’s Inspection Technologies, Wabtec is set to maintain its leadership in industrial solutions while driving sustainable growth.
Discover more from Business-News-Today.com
Subscribe to get the latest posts sent to your email.