S&T AG S&T AG takes over Kapsch CarrierCom and Kapsch PublicTransportCom
Business news for the stock market
Linz (pta008/23.05.2019/09:30) - May 23, 2019
Vienna, May 23, 2019 - S&T AG (ISIN: AT0000A0E9W5, WKN: A0X9EJ, stock exchange code: SANT) entered today into an agreement with KAPSCH-Group Beteiligungs GmbH, Vienna, Austria, to purchase 100% of the shares of Kapsch CarrierCom AG, with this including its subsidiaries and its operative business area Kapsch PublicTransportCom. The conclusion of the transaction is dependent upon the securing of official authorizations that might be required.
Kapsch CarrierCom AG is one the world's highly regarded suppliers of communication solutions employed in mission critical networks. The thrusts of its business are the planning, development, assembly and maintenance of GSM-R (global systems for mobile communication on railways) networks and their further development into FRMCS (future railway mobile communication systems). Kapsch CarrierCom also possesses a portfolio of cutting-edge PS-LTE (public safety LTE) products. Its technological focus and its investments in research and development have made the company a driving force in the establishment of the standards to be applied in the future to operations-critical communication. An example of this is the company's participation in the European research initiative Shift2Rail. Kapsch PublicTransportCom provides solutions for public transportation. The two business areas employ nearly 500 people, and in their last financial year had revenues of some EUR 120 million. Downstream project costs and expenditures for external development caused the areas to continue to record losses. The purchase price - subsequent to taking into consideration liabilities and cash on hand - ranges in the low double digits of millions of euros.
Hannes Niederhauser, the Chairman of the Executive Board of S&T AG, comments on the transaction: "This acquisition represents our achieving a further milestone in the implementation of the objectives that we have set for growth in our Agenda 2023 plan. Kapsch CarrierCom is one of the world's leading suppliers of communication solutions employed by operators of rail systems. Over the last few years, the company has successfully transformed itself from a provider of customer-specific hardware products into a supplier of hardware-independent software-based solutions. The technologies acquired in the transaction ideally complement the portfolio possessed by the Kontron/S&T Group in the area of 'IoT Transportation'. The large portion of software comprised in the transaction constitutes our pursuance of our strategy of increasing our value added."