The German industrial conglomerate Siemens is reportedly exploring the sale of its Intelligent Traffic Systems unit for up to $725 million it works to shed non-core businesses.
In recent years, Siemens has been selling off or listing businesses at a rapid pace as it worked to slim down operations and focus exclusively on core operations. For example, Siemens Healthineers and Siemens Energy have both been publicly listed, allowing Siemens to sell minority stakes during the IPOs.
The ITS unit itself, which generates over $700 million in annual sales, was nearly shed in 2019 as part of a sale of Siemens mobility unit to Alstom. However, the deal was prevented by European regulators.
When the business goes up for sale, it will likely be joined shortly thereafter by another Siemens division which produces machinery for airport and postal logistics. However, the company is expected to hold off on that listing until the current travel slump ends.