GERMANY: Funkwerk AG is to sell its signalling and control technology business and Swedish subsidiary Funkwerk Information Technologies Malmö to Scheidt & Bachmann. The transaction announced on December 4 is scheduled to come into effect from midnight on December 31, with the deal to be completed by the end of May. Terms are not being disclosed.
Funkwerk said it plans to focus on its core information and communication systems activities. A further factor in the decision to sell is the consolidation in the signalling sector, where Funkwerk holds a minor market share with an annual sales of €15m.
Funkwerk has set up Schienenverkehr System Technik GmbH as a new company to pool the assets being sold. In the first three quarters of 2013 the divested companies generated sales of around €10m, with an operating loss of around €3m resulting primarily from substantial development costs.