Estraffic acquires LS Electric's railway signaling business for $57 million

Estraffic, a company specializing in AI-based smart transportation solutions, has officially acquired the railway signaling business division from LS Electric. The total transaction value for this acquisition stands at 74.5 billion won.

The business transfer agreement was signed on the 6th, marking a significant step in Estraffic's strategic expansion. To manage financial burdens during the integration process, both companies agreed on a payment structure where the acquisition price will be paid sequentially based on the progress of the acquired business.

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This acquisition is a process of integrating the technologies and experiences held by both companies.

This arrangement allows Estraffic to proceed with the acquisition without requiring a large, immediate capital outlay. The company has stated its intention to complete the remaining acquisition procedures without resorting to external funding methods such as capital increases or the issuance of convertible bonds.

An Estraffic representative highlighted that the acquisition is a process of integrating the technologies and expertise of both firms. They believe this move will serve as a catalyst for expanding their business as an AI-based platform company. The integration aims to leverage LS Electric's established presence in the railway signaling sector with Estraffic's advanced AI capabilities.

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It will serve as an opportunity to expand our business as an AI-based platform company.