France's Thales has finalized the sale of its rail technology division to its Japanese competitor Hitachi, both firms said on Friday.
According to Hitachi, it is paying €1.66 billion ($1.8 billion) for the division, which is primarily involved in signalling technology. Around 9,000 employees will switch companies, with 2,000 of them working at three locations in Germany.
"Hitachi is pursuing ambitious plans to accelerate its growth in the German railway market in the field of signalling technology and rolling stock," the company announced.
Hitachi Rail will now have a presence in 51 countries.
Thales said the sale of the rail division would strengthen the group's strategic focus on long-term high-tech growth markets of aerospace, defence and security.
