Wabtec Completes Acquisition of Evident’s Inspection Technologies

PITTSBURGH – Wabtec Corporation (NYSE: WAB) has successfully closed its acquisition of Evident’s Inspection Technologies division, a move that significantly bolsters Wabtec’s Digital Intelligence segment. This strategic addition brings cutting-edge, non-destructive testing and remote visual inspection technologies into Wabtec’s fold, formerly a key part of Olympus Corporation’s Scientific Solutions Division. The integration is poised to enhance customer productivity, reliability, and safety across Wabtec’s core markets and beyond, setting the stage for accelerated, profitable growth.

“This is a landmark day for Wabtec,” stated Rafael Santana, President and CEO of Wabtec. “By bringing Inspection Technologies on board, we’re not just expanding our Digital Intelligence business; we’re injecting advanced products and services that will benefit our rail, mining, and industrial customers. This also opens doors to new, high-growth, high-margin markets. It perfectly complements our existing offerings, is accretive to our key financial metrics, and reinforces our commitment to leading the industry through innovation.”

The acquisition is a critical step in Wabtec’s growth strategy, aligning with the escalating demand for sophisticated diagnostic technologies. It directly supports the company’s growth drivers, including the accelerated development of scalable technologies, expanding its installed base, growing high-margin recurring revenues, and driving ongoing operational enhancements. Notably, this deal effectively doubles the total addressable market for Wabtec’s Digital Intelligence business, expanding it from approximately $8 billion to $16 billion and significantly enhancing its capacity to serve a broader customer base with innovative solutions.

“The Inspection Technologies product portfolio is a perfect match for our existing digital capabilities,” commented Nalin Jain, President of Wabtec’s Digital Intelligence Group. “It injects advanced automated inspection into areas where data acquisition, analytics, and automation are paramount. We anticipate this will accelerate the creation of scalable technologies by weaving together advanced analytics, sensors, and AI, ultimately delivering superior predictive maintenance capabilities to our customers. The team at Evident Inspection Technologies has done an exceptional job developing these innovations, and we’re thrilled to welcome them into the Wabtec family.”

TRANSACTION OVERVIEW

Wabtec acquired Evident’s Inspection Technologies division for $1.78 billion, which amounts to approximately $1.68 billion after accounting for tax benefits. The transaction was financed through a mix of existing cash reserves, newly issued term notes, and existing credit facilities. This acquisition is expected to deliver immediate shareholder value, with projections indicating high single-digit revenue growth, accretive Adjusted EBIT margins, and enhanced return on invested capital (ROIC) over the long term. Furthermore, the deal is anticipated to be slightly accretive to Adjusted Earnings Per Share (EPS) in the latter half of 2025. The purchase price reflects an estimated 12.0x multiple of projected 2025 EBITDA, adjusted for transaction and separation costs, anticipated tax benefits, and projected run-rate cost synergies of $25 million. Wabtec plans to integrate the revenue and EPS impact of this acquisition into its full-year financial guidance during its second-quarter earnings call.

About Wabtec Corporation

Wabtec Corporation is at the forefront of revolutionizing global mobility for future generations. As a leading worldwide provider of equipment, systems, digital solutions, and value-added services, Wabtec serves the freight and transit rail industries, alongside the mining, marine, and industrial sectors. With a rich history of 155 years in the rail industry, Wabtec is dedicated to advancing a sustainable rail system in the U.S. and across the globe. For more information, visit www.wabteccorp.com.

About Evident Inspection Technologies

Evident’s Inspection Technologies and Microscopy divisions originated in 2022 when Olympus Corporation spun off its Scientific Solutions Division to establish a new entity. Evident’s Inspection Technologies division specializes in solutions for complex challenges, providing non-destructive testing, remote visual inspection, and analytical instruments essential for the maintenance, manufacturing, and environmental sectors. For more details, visit ims.evidentscientific.com.

Forward-Looking Statements

This press release contains forward-looking statements as defined by U.S. securities laws. These statements pertain to the anticipated benefits of the Inspection Technologies acquisition, expected transaction synergies, projected impacts on Wabtec’s operational and financial performance (including business growth opportunities and TAM), and certain financial projections for Inspection Technologies. Statements other than historical facts, often identified by words such as “anticipate,” “estimate,” “expect,” “outlook,” “position,” “project,” “recur,” “strategy,” and “will,” among others, are considered forward-looking. Such statements are based on current plans, assumptions, estimates, and expectations and are subject to risks and uncertainties that could cause actual results to differ materially. For a comprehensive understanding of these risks, please refer to Wabtec’s filings with the SEC. Key factors that could lead to material differences between actual results and projections include, but are not limited to: (1) unexpected transaction-related costs, charges, or expenses; (2) uncertainty regarding the expected financial performance of Inspection Technologies and the combined entity post-acquisition; (3) risks associated with integrating Inspection Technologies and the potential inability to realize anticipated benefits and synergies; (4) the ability of the combined company to execute its business strategy; (5) challenges in retaining key personnel; (6) shifts in general economic or industry-specific conditions; and (7) other risk factors detailed in Wabtec’s SEC filings. This list is not exhaustive.

This press release also discusses certain non-GAAP measures. These non-GAAP measures should not be viewed as a substitute for GAAP-calculated figures, as they have inherent limitations.

Wabtec Completes Acquisition of Evident's Inspection Technologies