(Reuters) - French train manufacturer Alstom has agreed to sell its North American conventional rail signalling business to German rail systems manufacturer Knorr-Bremse AG ( KNBHF ) for around 630 million euros ($671 million), it said on Friday.

The business sold accounted for approximately 300 million euros in revenues for full-year 2023/24, the group said in a statement, adding that it will continue to serve the North American signaling market in other segments.

The proceeds from the sale, net of expected tax and transaction costs, should amount to around 620 million euros.

The deal is expected to close as soon as the summer, Alstom said, following regulatory approval.

The transaction is part of Alstom's plan to reduce its debt by 2 billion euros, which will be revealed in detail on May 8.

($1 = 0.9385 euros)