FRANKFURT (Reuters) - German conglomerate Siemens is preparing to put its traffic light technology and equipment unit up for sale as it continues to streamline its operations and shed businesses identified as non-core, two people close to the matter said.
The company is expected to launch the sale of the unit, Intelligent Traffic Systems (ITS), in the summer, which could value ITS at 500 million-600 million euros ($604 mln-$725 mln), the people said.
Siemens may appoint an investment bank to manage the sale but could also opt for organising the deal itself, the people said.
Siemens announced in November that it planned to split ITS into a separate company and said last week that it planned to do so by the summer and was considering rebranding the firm. A spokesman declined to comment further on the company’s plans for the unit.
ITS supplies hardware and software to monitor and steer traffic, including traffic light technology, cameras and radars, tolling systems, parking and street light controls.
ITS, which has annual sales of 600 million euros, is part of Siemens Mobility. Siemens had originally planned to merge that division with French train maker Alstom, but the EU commission stopped that deal in 2019 and Alstom has since acquired Bombardier’s rail business.
Siemens has been reshaping itself over the last few years, listing its Healthineers and Siemens Energy divisions and selling smaller operations like mechanical drives unit Flender.
A number of non-core activities dubbed portfolio companies remain, including a unit that makes machinery for postal and airport logistics which it is expected to put up for sale once the tourism industry has rebounded from the slump caused by the COVID-19 pandemic.
($1 = 0.8271 euros)
Reporting by Arno Schuetze; Editing by Susan Fenton
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