KNORR-Bremse has signed a contract to acquire Duagon, a Swiss supplier of hardware and software for safety-critical applications. Financial details of the transaction, which is subject to regulatory approval, were not disclosed.
Currently owned by DBAG Fund VII, a private equity fund advised by Deutsche Beteiligungs, Duagon develops embedded electronics for rolling stock and signalling systems, with operations spanning Europe, North America, China, India and Australia.
Duagon employs around 750 people across eight countries and recorded a compound annual growth rate of 15% between 2022 and 2025. Knorr-Bremse expects Duagon to generate around €175m in 2026 with an operating Ebit margin of about 16%, excluding integration costs.
Knorr-Bremse says the acquisition complements its strengths in safety-related electronics and software, particularly in braking and door systems, and will generate long-term synergies across its product range. Duagon’s portfolio is expected to support the global activities of Knorr-Bremse subsidiaries Selectron and KB Signalling, both of which are focused on digital technologies.
The deal is forecast to generate synergies of €5m to €10m by 2028. Knorr-Bremse also expects the integration of Duagon solutions to improve research and development efficiency, enhance competitiveness and enable innovation in areas such as remote monitoring and diagnostics.
“In Duagon we are gaining an expert in specialist solutions for not just embedded electronics but also communications and software solutions,” says Dr Nicolas Lange, Knorr-Bremse executive board member responsible for the company’s global Rail Division.
