Knorr-Bremse acquisition of Duagon Group strengthens rail tech

Knorr-Bremse acquisition of Duagon Group has been completed in a transaction valued at EUR 500 million, as stated in the Knorr-Bremse newsroom.

This is reported by the railway transport news portal Railway Supply.

The deal brings the Dietikon, Switzerland-based Duagon Group into Knorr-Bremse and is intended to deepen the company’s capabilities in integrated electronics and signaling technology for trains and railway lines, as outlined by Railway Pro.

Why the Duagon Group acquisition matters?

With the acquisition, Knorr-Bremse takes over one of the leading suppliers of electronic, hardware and software solutions for the railway industry and adds around 1,000 electronics and software specialists. Knorr-Bremse says this combined expertise will support the development of key technologies that can take the digital transformation of the railway industry to the next level.

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The focus includes customized solutions and microprocessors designed for the next generation of high-performance control and communication systems for trains. It also covers safety-critical components in signaling and track technology; Duagon sets out its rail offer on its duagon rail solutions page.

Growth profile and 2026 EBIT expectations

Duagon recorded a compound annual growth rate of approximately 15% between 2022 and 2025, a trend Knorr-Bremse expects to continue steadily in the coming years. With this, the group aims to become a leading supplier in an attractive market segment that it describes as having above-average annual growth rates.

Knorr-Bremse estimates that Duagon will generate an operating EBIT of around 16% in 2026, excluding integration costs. The company expects the margin can be improved in the coming years through significant revenue growth and potential cost savings, and it also projects EBIT synergies of EUR 5–10 million from 2028 onwards.

Integration into Rail Division, BOOST strategy, and Selectron

The Duagon Group will be integrated into Knorr-Bremse’s Rail Division and is expected to contribute to the implementation of the BOOST strategy, the company’s program to ensure long-term economic strength and success.

Nicolas Lange, a member of the Executive Board of Knorr-Bremse AG with global responsibility for the Rail Division, said Duagon’s expertise in electronics, software and digital solutions fits with Knorr-Bremse’s portfolio. He added that the acquisition creates significant new growth opportunities, particularly in communication and control solutions for rail transport (Selectron) and rail signaling technology (KB Signaling), while strengthening Knorr-Bremse’s position as a leading Tier 1 partner for the entire rail transport system.

Duagon’s customers include vehicle manufacturers, system integrators and railway infrastructure companies. Together, Knorr-Bremse’s Selectron and Duagon divisions are expected to generate annual revenues of approximately EUR 250 million and attractive profits.

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