The £1.7bn agreed sale price for Invensys Rail is just £50m short of the market value of the entire UK industrial software company.

Wayne Edmunds, Chief Executive of Invensys, said: “Invensys Rail has made significant strategic progress over the last five years and this is reflected in the disposal price of £1.7bn, which we believe delivers attractive value for our shareholders and also reflects Siemens’s ability to maximise the division’s potential.

Once the proposed deal is cleared by shareholders, Siemens will gain a dominant position in the global signalling sector, boosting its capabilities and workforce by around 3,250 staff across more than 30 countries.

In the UK, Invensys Rail is a significant force in the rail industry and has worked in alliances with Balfour Beatty, Carillion, Grant Rail and Amec.

Together both firms earlier this month won the £50m main core Crossrail signalling contract after suddenly deciding to submit a joint venture bid months after being shortlisted to tender separately for the project.