Allison Acquires Dana's Off-Highway Business for $2.7 Billion, Creating $5.5 Billion Global Enterprise
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 02 2026
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Source: PRnewswire
- Acquisition Completed: Allison Transmission has finalized its acquisition of Dana's Off-Highway Drive & Motion Systems business for approximately $2.7 billion, which will elevate the company's annual revenue to $5.5 billion, significantly enhancing its competitive position in the global market.
- Market Expansion: This merger expands Allison's market reach to 29 countries across critical sectors such as infrastructure, energy, agriculture, construction, and national security, thereby better addressing the growing demand for advanced high-performance mobility and work solutions.
- Leadership Structure Optimization: The combined company will be headquartered in Indianapolis and led by David Graziosi, ensuring more efficient operational management and localized service for global business, which enhances customer experience and market responsiveness.
- Financial Advisory Support: BofA Securities and KPMG LLP served as financial and transaction advisors for this deal, underscoring the strategic significance and market recognition of the transaction, which is expected to drive Allison's long-term financial performance.
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Analyst Views on ALSN
Wall Street analysts forecast ALSN stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for ALSN is 94.40 USD with a low forecast of 80.00 USD and a high forecast of 115.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
1 Buy
3 Hold
1 Sell
Hold
Current: 111.560
Low
80.00
Averages
94.40
High
115.00
Current: 111.560
Low
80.00
Averages
94.40
High
115.00
About ALSN
Allison Transmission Holdings, Inc. is a designer and manufacturer of propulsion solutions for commercial and defense vehicles. The Company is also a manufacturer of medium-and heavy-duty fully automatic transmissions. Its products are used in a variety of applications, including on-highway trucks, including distribution, refuse, construction, fire and emergency; buses, including school, transit and coach; motorhomes, off-highway vehicles, and equipment, including energy, mining and construction applications; and defense vehicles, including tactical wheeled and tracked. The Company operates in approximately 150 countries. The Company has manufacturing facilities in the United States, Hungary and India, as well as global engineering resources, including electrification engineering centers in Indianapolis, Indiana, Auburn Hills, Michigan and London in the United Kingdom. The Company also has approximately 1,600 independent distributor and dealer locations worldwide.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Dana Inc (DAN) Exceeds FY25 Expectations, Shares Surge Over 10%
- Strong Performance: Dana's preliminary FY25 sales reached $7.5 billion, exceeding the expected range of $7.3 billion to $7.5 billion, with adjusted operating income of $600 million, showcasing significant financial flexibility during its transformation.
- Share Price Surge: Following robust performance, Dana's shares surged over 10%, reflecting market optimism regarding the company's future growth potential, particularly after the sale of its Off-Highway business.
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