Atlantia goes up a gear with Yunex

Atlantia goes up a gear with Yunex
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The purchase of the Siemens traffic management subsidiary can increase the income of the Italian group by 30%

Siemens is going to give Atlantia a timely digital ride. The Italian group agreed on Monday to pay 950 million for the German firm’s Yunex traffic management system, its first purchase since ending a bitter dispute with Rome over Italian highways. Siemens’ push into smart cities is primarily related to rail and not highways, so Yunex is secondary.

Atlantia will also pay a generous 17.6 times forecast 2021 ebitda, a slight premium over sales from rivals TransCore and Cubic. For Atlantia it is the perfect time to take advantage of Yunex’s experience. More than 400 European cities are introducing mobility projects that could account for 20,000 million in the next decade. If Yunex grabs 10% of that, consistent with its market share, it would earn $2bn in revenue, a 30% annual boost to its current revenue of $635m. Atlantia steps up.