Hitachi Rail acquires Thales’ Ground Transportation Systems

Hitachi Rail has completed its €1.66 billion acquisition of Thales’ Ground Transportation Systems (GTS) business, significantly expanding its global reach to 51 countries and enhancing its revenue profile. With this acquisition, Hitachi Rail's revenue from higher-return signalling and systems has increased, aligning with the company's strategy for sustainable growth driven by digitalisation and sustainability. This strategic move places Hitachi Rail at the forefront of the global mobility sector, facilitating the shift from private to sustainable public transport through innovative digital solutions.

The acquisition boosts Hitachi Rail's annual revenues to €7.3 billion (¥1.1 trillion; USD $7.9 billion) for FY23 on a pro-forma basis, surpassing the company's longstanding revenue target of ¥1 trillion. This growth is part of a broader strategy combining organic growth and acquisitions to enhance profitability. Post-acquisition, the majority of Hitachi Rail's revenues will come from the signalling and systems division, which now operates over 26,000km of mainline railway and 4,600km of urban metros globally. This strategic shift underscores Hitachi Rail’s commitment to supporting the sustainable mobility transition.

Hitachi Rail’s operational footprint is significantly bolstered with key locations in Japan, Italy, the UK, and the US, complemented by GTS’ large centres in Germany, France, Spain, and Canada. The integration brings an additional 9,000 highly skilled employees, raising the total workforce to 24,000. The combined expertise of Hitachi Rail and GTS enhances the company's full portfolio of transport solutions, including rolling stock, urban turnkey railways, mainline digital signalling, freight signalling, and communication and supervision systems. This expanded capability is set to drive innovation in digital products such as signalling, ticketing, operations, and cybersecurity solutions.

Keiji Kojima, Hitachi's President and CEO, highlighted the acquisition as a significant milestone under the company's Mid-term Management Plan 2024. By integrating GTS, Hitachi Rail strengthens its market presence and digital service offerings, aiming to solve global social challenges through co-creation with customers. Giuseppe Marino, Group CEO of Hitachi Rail, emphasized that the combined entity will accelerate innovation and deliver advanced technology-led solutions, fostering sustainable mobility globally. This acquisition is part of Hitachi's broader strategy to transform its business portfolio around social innovation, focusing on sectors crucial to sustainable development, including energy transition, digital transformation, and sustainable mobility.