Wabtec Corporation (NYSE: WAB) has announced a definitive agreement to acquire Evident’s Inspection Technologies division, a global leader in Non-Destructive Testing (NDT), Remote Visual Inspection, and Analytical Instruments solutions for mission-critical assets. Formerly part of the Scientific Solutions Division of Olympus Corporation, the acquisition of Inspection Technologies will significantly enhance Wabtec’s Digital Intelligence business, driving profitable growth and reinforcing the company’s commitment to improving customer productivity, reliability, and safety.
Inspection Technologies brings a legacy of 50 years of innovation and expertise in advancing mission-critical applications. With a global footprint, the division operates through a geographically distributed sales force and four engineering and production facilities in North America and Japan, supported by a team of more than 1,300 professionals.
“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.
The acquisition will strengthen Wabtec’s capabilities in advanced automated inspection technologies, data acquisition, analytics, and automation. It also positions Wabtec to better serve key sectors such as rail, mining, and industrial markets while broadening its reach into complementary high-growth sectors.
“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.
The integration of Inspection Technologies will leverage Wabtec’s extensive software development expertise, engineering depth, and operational excellence to deliver superior solutions to customers. The division’s innovative product portfolio and industry-leading presence add a stable, predictable revenue base, with 68% derived from recurring revenues. In 2024, Inspection Technologies is expected to generate $433 million in revenue with an EBITDA margin of 25.9%.
“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.
Wabtec has agreed to acquire Inspection Technologies for $1.78 billion (~$1.68 billion after tax benefits), subject to customary adjustments. The acquisition is expected to double Wabtec’s Digital Intelligence business's total addressable market (TAM) from $8 billion to $16 billion. The purchase price reflects a 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 anticipated to be slightly accretive to Wabtec’s adjusted earnings per share (EPS) in the first year of ownership and is projected to deliver high single-digit revenue growth, accretive EBIT margins, and accretive return on invested capital (ROIC) over time. Subject to regulatory approvals and customary closing conditions, Wabtec expects the acquisition to be finalized by the end of the first half of 2025.
This strategic acquisition aligns with Wabtec’s long-term vision of driving innovation, productivity, and safety while ensuring the integrity of mission-critical assets, infrastructure, and supply chains on a global scale.
