Siemens agreed to buy Italian rail tech firm Mer Mec for about €1 billion ($1.17 billion).
Mer Mec, based in Monopoli near Bari, is currently owned by Angel Holding, whose CEO is Vito Pertosa.
The acquisition aims to strengthen Siemens Mobility’s technology and software capabilities in the train manufacturing sector.
Siemens is slated to report its earnings on Wednesday morning following the deal announcement.