Knorr-Bremse Acquires Duagon: Rail Tech Boosts Global Operations

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Introduction

Knorr-Bremse AG has announced the acquisition of duagon Group, a Swiss supplier, for approximately EUR 500 million plus a potential performance bonus. This strategic move aims to bolster Knorr-Bremse’s high-margin rail business globally.

Acquisition Details

The acquisition involves duagon Group, headquartered in Dietikon, Switzerland. The deal, signed with duagon’s previous owner DBAG Fund VII, is subject to regulatory approvals.

Duagon’s Profile

Duagon develops embedded electronics, communications, and software solutions for safety-related rail applications. The company operates across Europe, North America, China, India, and Australia, employing approximately 750 staff. Between 2022 and 2025, duagon recorded a compound annual growth rate of 15%. The company is forecast to generate revenues of around €175 million in 2026, with an EBIT margin of 16% (excluding integration costs).

Strategic Integration and Synergies

The integration of duagon into Knorr-Bremse’s portfolio is projected to yield considerable synergies in product development, cost efficiency, and revenues. Knorr-Bremse anticipates achieving EBIT-effective synergies of €5–10 million annually by 2028. Duagon’s expertise is expected to complement Knorr-Bremse’s existing businesses, particularly Selectron and KB Signaling, and will enable the Group to broaden its presence in rail electronics and signaling technology.

Industry Impact and Future Outlook

Knorr-Bremse highlighted the growing demand for advanced electronic and digital solutions in the rail sector, driven by the digitalization of trains and networks. Duagon’s products will allow the company to increase the uniformity and scalability of electronic solutions across multiple product groups. This is expected to boost competitiveness, enhance cost efficiency in R&D, and accelerate innovations such as remote monitoring and diagnostics, which are critical to optimising rail operations and maintenance.

Conclusion

The acquisition of duagon aligns with Knorr-Bremse’s BOOST strategy, focusing on growing high-margin segments and enhancing technological expertise. The acquisition aims to position Knorr-Bremse as a Tier 1 partner for rail transport systems worldwide.

Knorr-Bremse AG

Knorr-Bremse AG has announced the acquisition of duagon Group, a Swiss supplier of hardware and software solutions for the rail industry. The company’s BOOST strategy focuses on growing high-margin segments and enhancing technological expertise.

duagon Group

Duagon, headquartered in Dietikon, Switzerland, develops embedded electronics, communications, and software solutions for safety-related rail applications. The company operates across Europe, North America, China, India, and Australia.

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