Knorr-Bremse Acquires Duagon: Expanding Rail Tech for India & Beyond

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Introduction

Knorr-Bremse has agreed to acquire Duagon Group, a railway electronics provider, for approximately €500m ($586m). The deal, announced on September 30, 2025, is expected to close pending regulatory approvals.

Acquisition Details

Knorr-Bremse, a German company, signed a purchase agreement with DBAG Fund VII, a private equity fund advised by Deutsche Beteiligungs (DBAG). The acquisition price includes a potential earn-out based on performance targets. The transaction’s completion is subject to standard regulatory approvals.

Duagon’s Profile

Duagon, founded in 1995, employs around 750 people and operates in eight countries. The company provides products and services to vehicle manufacturers, systems integrators, and infrastructure companies within the rail sector. According to Dr. Michael Goldbach, Duagon’s CEO, the acquisition will strengthen and expand Duagon’s position as a leading embedded electronics supplier.

Strategic Objectives

Knorr-Bremse plans to integrate Duagon’s embedded electronics to create “more uniform” electronics platforms. The company anticipates this will improve research and development cost efficiency and overall competitiveness. Knorr-Bremse aims to expand its activities in railway electronics and signaling technology, and expects to enhance its capabilities in braking and entrance systems.

Market Context

Knorr-Bremse’s CEO, Marc Llistosella, stated that the acquisition strengthens the rail business and enhances technological expertise in railway electronics and rail signaling technology. The company cited the increasing digitalization of trains and rail networks as a driver for electronic and software-based solutions, including remote monitoring and diagnostics. In September, Knorr-Bremse secured a contract with BEML, an Indian rail and metro coach manufacturer, to supply system technologies for India’s first high-speed trains.

Conclusion

Knorr-Bremse is set to acquire Duagon Group for approximately €500m, pending regulatory approvals. The acquisition aims to bolster Knorr-Bremse’s capabilities in railway electronics and software solutions, driven by increasing digitalization in the rail sector.

Company Summary

Knorr-Bremse: A German company that agreed to acquire Duagon to expand its activities in railway electronics and signalling technology.

Duagon Group: A Switzerland-headquartered railway electronics provider.

DBAG Fund VII: A private equity fund advised by Deutsche Beteiligungs (DBAG).

Deutsche Beteiligungs (DBAG): Advised DBAG Fund VII.

BEML: An Indian rail and metro coach manufacturer.

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