Siemens expands rail technology arm with Italian deal

The German group is buying key parts of MERMEC, adding 1,700 staff, €430m of revenue and rail inspection technology used in more than 70 countries

Siemens is buying key parts of Italy’s MERMEC Group in a deal that expands its global rail technology business and strengthens its position in the growing market for railway diagnostics.

The acquisition gives Siemens Mobility specialist systems used to inspect tracks, signalling, electrification networks and other rail infrastructure as operators invest in more digital and predictive maintenance.

The businesses being acquired employ around 1,700 people, serve customers in more than 70 countries and generated revenue of about €430m in FY25, Siemens said in a statement.

The deal covers MERMEC operations in wayside signalling, electrification, telecommunications, diagnostics, analytics and worldwide data infrastructure. It is expected to close by the end of 2026, subject to customary conditions, and financial terms were not disclosed.

MERMEC was founded in 1970 and is headquartered in Monopoli, Italy. Its technology includes railway signalling systems, digital diagnostics platforms and high-precision measurement trains.

The acquisition also strengthens Siemens’ position in Italy, where MERMEC has a strong presence in mainline rail infrastructure and Siemens is already active in urban signalling.

Michael Peter, chief executive of Siemens Mobility, said: “By combining MERMEC’s technological expertise and market access with Siemens Mobility’s global presence and technology leadership, we are strengthening our capabilities in diagnostics, asset-intelligence and signaling capabilities.

“This step expands our industrial footprint in Italy within our world-leading signaling business and significantly enhances our global diagnostics portfolio.”

The transaction is expected to increase Siemens’ earnings per share before purchase price allocation by the second year after closing, and to fall within Siemens Mobility’s target margin range by the same point.

READ MORE: New routes put Europe’s rail revival back on track. Three new or planned services – linking London with Switzerland, London with Stirling and Paris with Berlin – point to rising demand for cheaper, greener and easier cross-border rail travel. 

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_{Main image: Siemens’ Munich headquarters, where The Wings, a 2016 sculpture and light installation by Studio Libeskind, stands in the main courtyard. Siemens has agreed to acquire key businesses from Italy’s MERMEC Group as it expands its global rail technology portfolio. Credit: Martin Falbisoner, Own work, CC BY-SA 4.0, via Wikimedia Commons.}