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• By acquiring duagon, Knorr-Bremse will strengthen its existing business with electronic and software solutions for rail vehicles;
• Knorr-Bremse will become global market leader for electronic platform solutions for safe, efficient rail transport and expects considerable synergies in terms of product development, cost efficiency, and revenues;
• duagon will complement Knorr-Bremse’s existing, attractive rail signaling business and creates market entry in Europe;
• At the same time, Knorr-Bremse will increase its share of revenue in attractive product segments in rail vehicles, which are growing above-average;
• The acquisition is another milestone in the BOOST strategy and will generate further profitable growth for the Rail Division;
• Attractive purchase price of around Euros 500 million plus a potential performance bonus based on predefined results.
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. Headquartered in Dietikon, Switzerland, duagon is a leading supplier of hardware and software solutions for safety-related applications primarily in the railway industry and a multinational enterprise focused on Europe, North America, China, India and Australia.
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.
What is more, duagon’s expertise and products will perfectly complement the global business of two Knorr-Bremse specialists: Selectron and KB Signaling. Given the increasing digitalization of trains and rail networks, the duagon acquisition will allow the two lines of business of railway electronics and rail signaling technology to maximize their profits in the fast-growing market for electronic, software-based, digital solutions for rail vehicles and rail signaling systems. For KB Signaling, which is taking its North American business global, duagon will provide the opportunity to harness additional growth worldwide.
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.”
Dr. Nicolas Lange, member of the Executive Board of Knorr-Bremse AG with global responsibility for the Rail Division: “Safety, reliability, and efficiency are at the core of our DNA, which means that duagon is a perfect match for us. In duagon we are gaining an expert in specialist solutions for not just embedded electronics but also communications and software solutions for trains and train tracks. Above all, duagon’s platform solutions will allow us to increase the uniformity and scalability of our established solutions and to further improve the services we provide to our customers through digitalization. This acquisition will take Knorr-Bremse a big step closer to its goal of becoming a leading Tier 1 partner for the entire rail transport system, also with regard to electronic solutions.”
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.”
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.
Safety-related products a good match for Knorr-Bremse’s portfolio
The acquisition will reinforce Knorr-Bremse’s commitment to the market segments for electronics, communications, and software solutions that perform safety-critical tasks in rail transport areas experiencing higher-than-average growth. Digitalization in particular is driving up demand for highly advanced electronics and software. For example, duagon products are integrated into the on-board architecture of trains as well as the signaling technology along the railway lines. Among other things, they help to safely control train subsystems and process safety-related information, commands, and signals. These are profitable areas requiring sophisticated technology, with high barriers to market entry and involving longstanding customer relationships.
Synergies and digital innovations
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.
About duagon Group
Established in 1995, duagon (duagon.com) 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.
About Knorr-Bremse
Knorr-Bremse (knorr-bremse.com) is the global market and technology leader for braking systems and a leading supplier of other rail and commercial vehicle systems. Knorr-Bremse’s products make a decisive contribution to greater safety and energy efficiency on rail tracks and roads around the world. More than 32,000 employees at over 100 locations in 30 countries develop and produce innovative solutions and services that meet the highest technological standards. In 2024, Knorr-Bremse’s two divisions together generated revenues of approximately € 7.9 billion. For 120 years, the Company has been at the cutting edge of its industries, driving innovation in mobility and transportation technologies with a leading edge in connected system solutions. Knorr-Bremse is one of Germany’s most successful industrial companies and profits from the key global megatrends: urbanization, sustainability, digitalization, and mobility.
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anika.wild[.]knorr-bremse.com 
