German multinational conglomerate Siemens renames its Intelligent Traffic Systems (ITS) to Yunex Traffic as the engineering firm focuses to move ahead with plans of a partial spin-off of the signaling business ahead of a potential sale.
The signaling business which functions in more than 40 countries and has an annual revenue of $726 million, was due to be renamed by the end of February as part of the process.
In recent years, the German multinational firm has been working on simplifying its business by separating and floating its energy and health equipment divisions as it aims to become a technology-focused company and lose the conglomerate discount which has weighed on its stock price.
The new CEO of Siemens, Roland Busch last week stated that the ITS spin-off which was announced in November should be completed by mid-2021. After the carve-out, the unit which is currently part of Siemens’ mobility business will be put up for sale this summer.
ITS makes traffic lights and manages traffic systems in Dubai, London, Berlin and Miami. The company generates around a third of its revenue in each of software, hardware and services. It also offers technology which will give drivers on Austrian motorways information about road conditions, congestion and accidents.
“As an independent company with a clear focus, Yunex Traffic will be able to pursue its growth strategy even better, shape digitalization in the industry and, as a next step, also actively pioneer data management in cities,” Siemens Mobility CEO Michael Peter said.
The current conditions are highly supportive to build a successful future, with a growing order intake of 8 percent on average in recent years. “We will take the appropriate time to examine the most suitable options, there is no hurry,” Mr. Peter added.