Wabtec to Acquire Evident’s Inspection Technologies Division
PITTSBURGH, January 14, 2025 – Wabtec Corporation (NYSE: WAB) has entered into a definitive agreement to acquire Evident’s Inspection Technologies division (Inspection Technologies). This division was formerly part of the Scientific Solutions Division of Olympus Corporation, a global leader in Non-Destructive Testing, Remote Visual Inspection and Analytical Instruments solutions for mission-critical assets.
Recognized for its industry-leading brands and technologies, Inspection Technologies will bring complementary capabilities to Wabtec’s Digital Intelligence business. This acquisition is designed to accelerate Wabtec’s profitable growth, further solidifying its commitment to improving customer productivity, reliability, and safety.
With a history spanning 50 years, Inspection Technologies serves a diverse customer base through a global sales force and four engineering and production facilities in North America and Japan, employing over 1,300 team members.
“The addition of Inspection Technologies aligns with our growth strategy to accelerate the innovation of scalable technologies, increase our installed base, expand high margin recurring revenues and continuously drive operational performance,” said Rafael Santana, President and CEO of Wabtec. “I am incredibly excited to partner with Evident’s talented Inspection Technologies team to further enhance our presence in key markets and applications. Together, we will drive profitable growth, lead in customer value and innovation, and maximize value creation. Inspection Technologies will augment our existing offerings in the rail, mining and industrial sectors while broadening our reach into other high growth, high margin complementary sectors,” said Nalin Jain, President of Wabtec’s Digital Intelligence Group.
Inspection Technologies’ innovative products will significantly expand Wabtec’s capabilities by adding advanced automated inspection technologies. The integration of Inspection Technologies will leverage Wabtec’s software development expertise and commitment to operational excellence, resulting in superior solutions for customers.
“Our deep expertise, shared commitment to innovation and strong customer relationships will unlock significant value. The combination of our two skilled teams and complementary portfolios will accelerate the development of first-class, intelligent monitoring solutions to meet the changing needs of the industries we serve,” said Karen Smith, Executive Vice President of Evident Inspection Technologies.
Inspection Technologies, headquartered near Boston, MA, is projected to achieve approximately $433 million in revenue for calendar year 2024, with an EBITDA of about $112 million, representing a margin of 25.9%. The division also has a strong and predictable revenue stream, with recurring revenue representing about 68% of its total.
This acquisition will effectively double the size of Wabtec’s total addressable market (TAM) for its Digital Intelligence business, from approximately $8 billion to $16 billion, and improve its capacity to offer innovative solutions to a wider range of customers.
Wabtec agreed to acquire Evident’s Inspection Technologies division for $1.78 billion (~$1.68 billion after tax benefits). The transaction is expected to provide immediate shareholder value, with a high single-digit revenue growth outlook, accretive Adjusted EBIT margins, and accretive return on invested capital (ROIC) over time. Adjusted EPS is also projected to be slightly accretive in the first year. The purchase price reflects an estimated multiple of 12.0x projected 2025 EBITDA, adjusted for transaction and separation costs, anticipated tax benefits, and projected run-rate cost synergies of $25 million.
The transaction is subject to customary closing conditions and regulatory approvals, with the company expecting to finalize the purchase of Inspection Technologies by the end of the first half of 2025.
This strategic acquisition supports Wabtec’s long-term vision of advancing innovation, productivity, safety, and reliability while ensuring the integrity of critical assets on a global scale.
Conference Call Information
Wabtec will host a call with analysts and investors at 8:30 a.m., Eastern Time, today to discuss the acquisition. To listen via webcast, visit Wabtec’s website at www.WabtecCorp.com and click on “Events & Presentations” in the “Investor Relations” section.
About Wabtec Corporation
Wabtec Corporation (NYSE: WAB) focuses on delivering transportation solutions that move and improve the world. It is a leading global provider of equipment, systems, digital solutions, and value-added services for the freight and transit rail industries, as well as mining, marine, and industrial markets. Wabtec, a leader in the rail industry for over 150 years, aims to achieve a zero-emission rail system in the U.S. and worldwide. Visit Wabtec’s website at www.wabteccorp.com.
About Evident Inspection Technologies Division
Evident’s Inspection Technologies and Microscopy divisions were established in 2022 after Olympus Corporation spun off its Scientific Solutions Division to form a new company. The Inspection Technologies division provides solutions for inspecting mission-critical assets and infrastructure through nondestructive testing, remote visual inspection, and analytical instruments for maintenance, manufacturing, and environmental applications. Visit Evident’s website at www.evidentscientific.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. securities laws. These statements include the expected benefits of the Evident’s Inspection Technologies division acquisition, anticipated synergies, and the expected impact on Wabtec’s operational and financial performance. The company’s SEC filings provide additional information on risks that could cause actual results to differ materially from those expressed or implied. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, (1) the risk that the proposed transaction may not be completed in the time frame expected by Wabtec or at all; (2) the potential for unexpected costs, charges or expenses resulting from the proposed transaction; (3) uncertainty of the expected financial performance of Inspection Technologies and the combined company following completion of the proposed transaction; (4) risks associated with the integration of Inspection Technologies and the potential for failure to realize the anticipated benefits and synergies of the proposed transaction; (5) the ability of the combined company to implement its business strategy; (6) inability to retain key personnel; (7) changes in general economic and/or industry specific conditions; and (8) other risk factors as detailed from time to time in Wabtec’s reports filed with the Securities and Exchange Commission. The foregoing list of important factors is not exclusive.
This press release also contains certain non-GAAP measures. Non-GAAP measures should not be considered as a substitute for items calculated in accordance with GAAP, as they are subject to inherent material limitations.
