Wabtec Corporation has successfully completed the acquisition of Evident’s Inspection Technologies division, strengthening its Digital Intelligence segment. This $1.78 billion acquisition will benefit the company with the non-destructive testing, remote inspection, and advanced analytical solutions. It is poised to double the addressable market and enhance the technical innovations in the rail, mining, and industrial sectors.
Introduction:
In a bold initiative, Wabtec Corporation has officially completed the acquisition of Evident’s Inspection Technologies division, previously a part of Olympus Corporation’s Scientific Solutions Division. This achievement marks a key milestone for Wabtec aims to accelerate its Digital Intelligence business. The deal will improve asset reliability, predictive maintenance, and customer safety across several critical industries.
Strengthening the Digital Edge:
Wabtec can now be among prominent leaders in non-destructive testing (NDT), remote visual inspection (RVI), and advanced analytical instruments. These technologies can benefit in sectors like rail, mining, marine, and industrial by improving the operational efficiency. Diagnostic capabilities with automated inspection systems, AI-enabled sensors, and real-time data analytics are some of the things that will benefit Wabtec.
Expanding Market Reach & Recurring Revenue:
This acquisition will expand Wabtec’s total addressable market (TAM) from $8 billion to an estimated $16 billion. The initiative will not only help the company in growing in new high-growth sectors but also enhance recurring revenue streams by digital and inspection services.
Transaction Details:
- Total Deal Value: $1.78 billion (approximately $1.68 billion post-tax benefits)
- Financing Method: Cash on hand, term loans, short-term borrowings, and newly issued term notes
- Expected Synergies: $25 million in cost savings projected
- Impact: Accretive to adjusted EPS in H2 2025; high single-digit revenue growth anticipated
- EBITDA Valuation Multiple: 12.0x (adjusted for synergies and tax benefits)
Wabtec decided to include revenue and earnings impacts in its Q2 2025 Earnings Guidance, showing the company’s effort towards transparency and shareholder value.
Insights:
Rafael Santana, President and CEO of Wabtec said, “Today, we are a stronger company with the addition of Inspection Technologies. The acquisition expands and strengthens our Digital Intelligence business, with advanced products and services for the Company’s rail, mining, and industrial sectors, while broadening our reach into other high-growth, high-margin end-markets. It enhances Wabtec’s existing portfolio, is accretive to key financial metrics, and aligns with the company’s long-term vision to lead the industry in innovation for our customers.”
Nalin Jain, President of Wabtec’s Digital Intelligence Group said, “Inspection Technologies’ product portfolio strongly complements our existing digital technologies, while adding advanced automated inspection capabilities in a space where data acquisition, analytics, and automation are critical. It will accelerate the development of scalable technologies by integrating advanced analytics, sensors, and AI technology to deliver enhanced predictive maintenance capabilities to our customers. Evident Inspection Technology employees have done a fantastic job in delivering these innovative technologies and I am looking forward to welcoming them to the Wabtec family.”
About the Companies:
Wabtec Corporation is a 155-year-old company that works in freight and transit rail solutions, promoting sustainability and digital transformation in transportation.
Evident’s Inspection Technologies Division, now part of Wabtec, specializes in precision inspection solutions for manufacturing, maintenance, and infrastructure safety through nondestructive and remote technologies.
Conclusion:
The acquisition of Evident’s Inspection Technologies division will reinforce Wabtec’s leadership in several sectors like rail, mining, and industry. This will accelerate the company’s technological capabilities, market footprint, and recurring revenue base. Wabtec will transform the rail and industrial sector with the digital solutions and the diagnostic technologies
Source: Wabtec – Press Release | Image Credit: Wabtec
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