TOKYO: Japanese industrial conglomerate Hitachi will buy European defence electronics company Thales’ railway signalling business for US$1.97 billion, the company said today.

Thales’ Ground Transportation Systems operates rail signalling, train-control and fare-collection systems. 

The unit has about 9,000 employees in 42 countries and generated €1.6 billion in revenue in fiscal 2020.

Through the purchase, Hitachi hopes to expand digitisation in the rail sector and increase its railway business revenue to ¥1 trillion by fiscal 2026, the company said in a news release.