Estrafic Signs Agreement to Acquire LS ELECTRIC Railway Signaling Business

Estrafic has signed a business transfer agreement for the railway signaling division of LS ELECTRIC.

Dae-Seok Choi, CEO of LS Electric, and Chan-Jong Moon, CEO of estrafic, are taking a commemorative photo. estrafic

According to Estrafic on August 7, this acquisition is expected to be a crucial turning point that will elevate the localization and safety standards of domestic railway signaling technology and accelerate the company’s entry into global markets.

The two companies placed the highest priority on their mutual financial stability throughout this business transfer, which amounts to a total of 74.5 billion won. They agreed on a reasonable settlement structure that links payments to each stage of business execution. Estrafic will be able to proceed with the acquisition while minimizing the burden of substantial short-term capital outlay. The company plans to complete the remaining procedures of the acquisition while maintaining financial stability, without having to raise external funds through paid-in capital increases or the issuance of convertible bonds.

With the integration of the two companies' technologies and business experience, Estrafic will establish a “full portfolio of railway signaling” covering urban railways as well as conventional and high-speed railways. This is expected to further bolster Estrafic’s competitive edge in next-generation railway signaling technology, lead the advancement of the domestic railway signaling market, and solidify its technology base. In addition, the unification of research and development (R&D) and materials procurement between the two companies is expected to enhance cost competitiveness and secure stable, long-term maintenance projects, which will improve overall performance. Furthermore, by leveraging proven overseas references, Estrafic plans to expand its core package business and actively pursue turnkey and EPC (Engineering, Procurement, and Construction) projects based on its expanded portfolio.

A representative from Estrafic stated, “This acquisition goes beyond simple business expansion; it is a process of ‘integration of value’ that brings together the technology, experience, and human resources of both companies.” The representative added, “It will be an important inflection point as we evolve into a high-value-added platform company based on artificial intelligence (AI).”

This content was produced with the assistance of AI translation services.