Knorr-Bremse has completed the acquisition of the Duagon Group, based in Dietikon, Switzerland, in a transaction valued at EUR 500 million. By acquiring one of the leading suppliers of electronic, hardware, and software solutions for the railway industry, Knorr-Bremse will strengthen its technological expertise in integrated electronics and signaling technology for trains and railway lines.
The combined expertise of approximately 1,000 electronics and software specialists will enable Knorr-Bremse to develop key technologies that will take the digital transformation of the railway industry to the next level. These include customized solutions and microprocessors for the next generation of high-performance control and communication systems for trains, as well as safety-critical components in signaling and track technology.
Duagon has recorded a compound annual growth rate of approximately 15% between 2022 and 2025, a trend that Knorr-Bremse expects to maintain steadily in the coming years. The acquisition will also transform Knorr-Bremse into a leading supplier in an attractive market segment with above-average annual growth rates.
Knorr-Bremse estimates that Duagon will generate an operating EBIT of around 16% (excluding integration costs) in 2026, a margin that can be increased in the coming years through significant revenue growth and potential cost savings. In addition, EBIT synergies of EUR 5-10 million are expected from 2028 onwards.
The Duagon Group will be integrated into Knorr-Bremse’s Rail Division and will contribute to the implementation of the BOOST strategy – Knorr-Bremse’s program for ensuring long-term economic strength and success.
“Duagon’s expertise in electronics, software, and digital solutions fits perfectly with our portfolio. The acquisition of the Duagon Group will open up significant new growth opportunities for Knorr-Bremse, particularly in our business areas involving communication and control solutions for rail transport (Selectron) and rail signaling technology (KB Signaling). Overall, it will enable us to strengthen our position as a leading Tier 1 partner for the entire rail transport system,” said Nicolas Lange, member of the Executive Board of Knorr-Bremse AG, with global responsibility for the Rail Division.
Duagon’s customers include vehicle manufacturers, system integrators, and railway infrastructure companies. Together, Knorr-Bremse’s Selectron and Duagon divisions will generate annual revenues of approximately EUR 250 million and attractive profits.
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