German braking systems specialist Knorr-Bremse AG has announced the acquisition of Swiss technology company Duagon Group in a strategic move to strengthen its rail electronics and software business. The €500 million transaction, signed on September 25, 2025, positions Knorr-Bremse to enhance its portfolio of safety-critical applications for rail vehicles and signaling technology. The acquisition will be financed through existing liquidity and credit facilities, with the deal subject to standard regulatory approvals.

Duagon Group, headquartered in Dietikon, Switzerland, brings specialized expertise in electronic and software solutions for safety-relevant applications in the rail sector. Founded in 1995, the company employs approximately 750 people across eight countries and has established itself as a leading global provider in railway electronics. The acquisition complements Knorr-Bremse's existing electronics and software operations, particularly in safety-critical areas where both companies have significant overlap.

Financial projections indicate that Duagon is expected to generate approximately €175 million in revenue for Knorr-Bremse by 2026, with an operating EBIT margin of around 16% excluding integration costs. The German company anticipates that this margin can be further improved in coming years. Additionally, Knorr-Bremse expects annual EBIT synergies of €5-10 million to materialize starting in 2028, contributing to the strategic rationale behind the acquisition.

The seller in the transaction is DBAG Fund VII, a private equity fund advised by Deutsche Beteiligungs AG. The purchase price includes potential performance-based additional payments if predefined targets are met. Knorr-Bremse shares showed modest gains following the announcement, trading at €79.15 with a 0.13% increase on Tradegate exchange. The acquisition represents a significant step in Knorr-Bremse's strategy to expand its global rail business through targeted technological enhancements.