Wabtec Completes Acquisition of Evident’s Inspection Technologies Division, Strengthening Digital Intelligence Leadership
Wabtec Corporation (NYSE: WAB) has announced the successful completion of its acquisition of Evident’s Inspection Technologies division, formerly part of Olympus Corporation’s Scientific Solutions Division. As a global leader in Non-Destructive Testing (NDT), Remote Visual Inspection, and Analytical Instruments solutions for mission-critical assets, Inspection Technologies brings advanced capabilities that significantly bolster Wabtec’s Digital Intelligence business. This acquisition not only enhances customer productivity, reliability, and safety but also positions Wabtec for accelerated, profitable growth across key industries.
A Strategic Move to Drive Innovation and Growth
“This acquisition makes us a stronger company,” said Rafael Santana, President and CEO of Wabtec. “With the addition of Inspection Technologies, we are expanding and strengthening our Digital Intelligence portfolio with cutting-edge products and services tailored to the rail, mining, and industrial sectors. It broadens our reach into high-growth, high-margin end markets and aligns perfectly with our long-term vision to lead the industry in delivering innovative solutions for our customers.”
The acquisition is a strategic milestone that accelerates Wabtec’s growth trajectory while addressing the rising demand for advanced diagnostic technologies. It aligns seamlessly with Wabtec’s core growth drivers, including scaling innovative technologies, expanding the installed base, increasing recurring revenues, and driving operational excellence. By integrating Inspection Technologies, Wabtec effectively doubles its total addressable market (TAM) from approximately $8 billion to $16 billion, unlocking new opportunities to serve a broader range of customers with enhanced solutions.
Complementary Product Portfolio and Advanced Capabilities
Inspection Technologies’ product portfolio complements Wabtec’s existing digital offerings while adding advanced automated inspection capabilities. These include state-of-the-art tools for data acquisition, analytics, and automation—critical components in today’s data-driven industrial landscape.
“Inspection Technologies’ expertise strongly aligns with our digital strategy,” said Nalin Jain, President of Wabtec’s Digital Intelligence Group. “By integrating advanced analytics, sensors, and AI technology, we can accelerate the development of scalable predictive maintenance solutions for our customers. This acquisition will enable us to deliver even greater value by improving asset performance and reducing downtime. The employees of Evident Inspection Technologies have been instrumental in developing these innovative solutions, and I am excited to welcome them to the Wabtec family.”
The combination of Inspection Technologies’ advanced diagnostic tools with Wabtec’s existing digital platforms creates a powerful synergy. This integration enhances Wabtec’s ability to provide predictive maintenance capabilities, enabling customers to optimize operations and reduce costs while ensuring the highest levels of safety and reliability.
Financial Impact and Shareholder Value
Wabtec acquired Evident’s Inspection Technologies division for $1.78 billion (~$1.68 billion after tax benefits). The transaction was financed through a mix of cash on hand, newly issued term notes, term loans, and short-term borrowing under the company’s credit agreement. The acquisition is expected to deliver immediate shareholder value, with a high single-digit revenue growth outlook, accretive Adjusted EBIT margins, and improved return on invested capital (ROIC) over time.
Additionally, the acquisition is projected to be slightly accretive to Adjusted EPS in the second half of 2025. 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. Wabtec plans to incorporate the financial impact of this acquisition into its Full-Year Guidance during its Q2 Earnings call.
Doubling Down on High-Growth Markets
The acquisition of Inspection Technologies expands Wabtec’s footprint in high-growth industries, including aerospace, energy, and infrastructure, while reinforcing its leadership in rail, mining, and industrial sectors. With a broader portfolio of advanced inspection tools, Wabtec is better positioned to meet the evolving needs of its customers, who rely on precise diagnostics and predictive maintenance to ensure the reliability and safety of their critical assets.
The integration of Inspection Technologies also strengthens Wabtec’s recurring revenue streams, a key focus area for the company. By offering comprehensive lifecycle solutions—from initial inspections to ongoing monitoring and maintenance—Wabtec can deepen customer relationships and drive long-term value.
A Commitment to Innovation and Customer-Centric Solutions
At its core, this acquisition underscores Wabtec’s commitment to innovation and delivering customer-centric solutions. By combining Inspection Technologies’ expertise with Wabtec’s digital intelligence capabilities, the company is poised to redefine how industries approach asset management and maintenance. This includes leveraging advanced AI and sensor technologies to predict potential failures before they occur, minimizing downtime, and maximizing operational efficiency.
The acquisition also highlights Wabtec’s dedication to sustainability and safety. By enabling customers to monitor and maintain their assets more effectively, Wabtec helps reduce waste, lower emissions, and enhance workplace safety—key priorities for industries worldwide.
About Wabtec Corporation
Wabtec Corporation is revolutionizing the way the world moves for future generations. The Company is a leading global provider of equipment, systems, digital solutions and value-added services for the freight and transit rail industries, as well as the mining, marine and industrial markets. Wabtec has been a leader in the rail industry for 155 years and has a vision to achieve a sustainable 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 when Olympus Corporation spun off its Scientific Solutions Division to form a new company. Evident’s Inspection Technologies division delivers solutions that solve complex challenges, inspecting mission-critical assets and infrastructure with nondestructive testing, remote visual inspection, and analytical instruments for maintenance, manufacturing, and environmental applications. Visit Evident’s website at ims.evidentscientific.com.
