Siemens has agreed to buy the rail signalling division of Invensys Rail, the rail automation business of UK-based Invensys, for £1.7bn to expand its presence in the global rail automation market.
Invensys Rail generated revenues of about £800m in the last financial year, ending March 2012.
The transaction, which is subject to regulatory approval and endorsement by Invensys shareholders, is expected to be completed in the second quarter of 2013.
Siemens rail automation business CEO Juergen Brandes said: “The combination of the regional activities, portfolios and customer offerings of Invensys Rail and Siemens will ensure profitable growth opportunities worldwide.”
Invensys Rail has carried out contracts for customers in the UK, Spain, the US and Australia, and in recent years has also expanded its business into emerging regions.