Knorr-Bremse AG has announced the acquisition of duagon Group, a Swiss supplier of hardware and software solutions for the rail industry. The transaction, valued at around EUR 500 million plus a potential performance bonus, marks a significant step in strengthening Knorr-Bremse’s high-margin rail business worldwide.
Duagon, headquartered in Dietikon, Switzerland, develops embedded electronics, communications, and software solutions for safety-related rail applications. With operations across Europe, North America, China, India, and Australia, the company employs around 750 staff and has recorded a compound annual growth rate of 15% between 2022 and 2025.
The acquisition, signed with duagon’s previous owner DBAG Fund VII, is subject to regulatory approvals.
Expanding electronics and signalling capabilities
The integration of duagon into Knorr-Bremse’s portfolio is expected to generate considerable synergies in product development, cost efficiency, and revenues. Duagon’s expertise will complement Knorr-Bremse’s established businesses, particularly Selectron and KB Signaling, enabling the Group to expand its presence in rail electronics and signalling technology.
Knorr-Bremse highlighted that demand for advanced electronic and digital solutions in the rail sector is growing faster than average, driven by the digitalisation of trains and networks. Duagon’s embedded solutions are widely used in on-board architectures as well as signalling infrastructure, supporting safe control of subsystems, information processing, and communications.
Marc Llistosella, Chief Executive Officer of Knorr-Bremse AG, said:
“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.”
Strengthening digital rail solutions
Knorr-Bremse emphasised that 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.
Dr Nicolas Lange, member of the Executive Board of Knorr-Bremse AG with global responsibility for the Rail Division, commented:
“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.”
duagon’s Role
Duagon has become a recognised leader in embedded electronics since its founding in 1995, working with vehicle manufacturers, systems integrators, and infrastructure operators worldwide. The company is forecast to generate revenues of around €175 million in 2026, with an EBIT margin of 16% (excluding integration costs). Knorr-Bremse expects to achieve EBIT-effective synergies of €5–10 million annually by 2028.
Dr Michael Goldbach, Chief Executive Officer of duagon, said:
“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.”
The acquisition of duagon aligns with Knorr-Bremse’s BOOST strategy, which focuses on growing high-margin segments, enhancing technological expertise, and positioning the company as a Tier 1 partner for rail transport systems worldwide.
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