MUNICH/ZURICH (Reuters) - Siemens' Intelligent Traffic Systems (ITS) will now be called Yunex Traffic as the German engineering company presses ahead with plans to carve out the signaling business ahead of a potential sale.
The business, which operates in more than 40 countries and has annual revenue of 600 million euros ($726 million), was due to be renamed by the end of February as part of the process.
Siemens has been simplifying its business in recent years, separating and floating its energy and health equipment divisions as it seeks to become a more focused technology company and lose the conglomerate discount which has weighed on its stock price.
New CEO Roland Busch said last week the ITS spin-off, announced in November, should be completed by mid-2021.
After the carve out, the unit, currently part of Siemens' mobility business, will be put up for sale this summer, insiders told Reuters last week.
Workers were informed of the new name on Friday.
The company makes traffic lights and also manages traffic systems in Dubai, London, Berlin and Miami. It generates around a third of its revenue in each of software, hardware and services.
It also provides technology which will give drivers on Austrian motorways information about road conditions, congestion and accidents.
"As an independent company with a clear focus, Yunex Traffic will be able to pursue its growth strategy even better, shape digitalisation in the industry and, as a next step, also actively pioneer data management in cities," Siemens Mobility CEO Michael Peter said.
Yunex is an invented name and intended to be international, and easy to say in different languages, as well as sound technical and future-orientated, Peter told Reuters.
The conditions for a successful future are good, he said, with a growing order intake of 8% on average in recent years.
Further steps after the carve out will be examined, Peter added.
"We will take the appropriate time to examine the most suitable options, there is no hurry," he said.
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