Knorr-Bremse acquires Swiss industrial computing company duagon for EUR500 million
Knorr-Bremse, the global market and technology leader for braking systems and other safety-related rail and commercial vehicle systems, is building up its high-margin rail business internationally by acquiring the duagon Group. duagon is a good fit with Knorr-Bremse’s existing business – particularly in the field of safety-related electronics and software. Adding a further pillar to Knorr-Bremse’s operations, the acquisition will generate significant synergies in electronics, for example for braking and entrance systems – areas in which Knorr-Bremse already has leading expertise.
Knorr-Bremse and the former owner DBAG Fund VII, a private equity fund advised by Deutsche Beteiligungs AG (DBAG), have signed a contract of sale to this effect. The closing is subject to the customary regulatory approvals.
DBAG invested in duagon in 2017 as part of a management buyout. Members of the management team also acquired stakes in the company. Following the entrance of the private equity investor, duagon acquired several companies.
Strong revenue growth
Established in 1995 and headquartered in Dietikon, duagon employs around 750 people across eight countries. The company achieved a compound annual growth rate of 15% between 2022 and 2025, a development Knorr-Bremse expects to be sustained over the coming years. Knorr-Bremse estimates that duagon will generate revenues of around Euros 175 million for 2026 with an operating EBIT margin of around 16% (excluding integration costs), which Knorr-Bremse plans to increase further in the coming years through significant revenue growth and cost potentials. In addition, Knorr-Bremse expects EBIT-effective run-rate synergies of Euros 5-10 million as of 2028. Customers of duagon include vehicle manufacturers, systems integrators, and infrastructure companies from the railway industry.
Integrating duagon’s embedded electronics solutions into Knorr-Bremse’s portfolio will make it possible to tap into synergies over the long term, creating a basis for more uniform and holistic electronics platforms for numerous product groups worldwide. This integration will also enhance cost efficiency in research and development and increase competitiveness while fostering digital innovations such as remote monitoring and remote diagnostics for efficient rail operations and optimized maintenance.
Dr. Michael Goldbach, Chief Executive Officer of duagon: “With Knorr-Bremse, duagon gains a partner with whom we will strengthen and rapidly expand our position as a leading embedded electronics supplier in the rail market. We look forward to benefitting from Knorr-Bremse’s strengths and expertise, leveraging them in all business segments, and bringing our complementary expertise to the world of Knorr-Bremse. This will create an even broader range of opportunities for our customers and employees and ensure long-term stability and continuity.”
Marc Llistosella, Chief Executive Officer of Knorr-Bremse AG: “Our acquisition of duagon, a successful electronics supplier, demonstrates once again that we are strengthening our rail business, which will drive up profitable growth. More particularly, we are honing our technological expertise in the key areas railway electronics and rail signaling technology and are increasing the high-margin share of revenue in rail vehicles. The acquisition is a perfect fit with our BOOST strategy, giving us the opportunity to reinforce and build on our core competencies but also focus on high-profit lines of business. We would like to warmly welcome duagon’s international team and look forward to collaborating with them.”
(Press release / SK)