Duagon Joins Knorr-Bremse as Group Expands Rail Division

Knorr-Bremse has completed its acquisition of Swiss rail electronics supplier duagon Group. The deal expands Knorr-Bremse’s capabilities in embedded electronics and rail signalling.

Knorr-Bremse has finalised its acquisition of duagon Group, headquartered in Dietikon, Switzerland. The deal brings one of the leading suppliers of rail electronics, hardware and software solutions into the group, expanding Knorr-Bremse’s capabilities in embedded electronics and rail signalling technology within its Rail Division.

Strategic Rationale

According to Knorr-Bremse, the acquisition supports the company’s long-term strategy by strengthening its technology base and expanding its presence in higher-growth rail market segments. duagon’s activities complement Knorr-Bremse’s existing businesses in communication and control systems and signalling solutions.

Marc Llistosella, Chief Executive Officer of Knorr-Bremse AG, said the transaction would strengthen the group’s technological and financial positioning and open up additional business opportunities in rail infrastructure and rolling stock systems. "In particular, it will allow us to tap into significant business opportunities for fast-growing, high-margin product lines for trains and rail infrastructure," Llistosella said.

Dr Nicolas Lange, Executive Board member responsible for the Rail Division, said duagon’s expertise in electronics, software and digital solutions aligns with Knorr-Bremse’s portfolio, particularly in rail communication, control and signalling technologies. The integration is expected to support growth across Knorr-Bremse’s Selectron and signalling businesses.

The combined organisation brings together around 1,000 electronics and software specialists, focusing on control systems, communication technologies and safety-critical signalling components for trains and rail infrastructure. Knorr-Bremse expects to realise synergies through closer integration of research and development, procurement and engineering functions.

Financial Outlook

Between 2022 and 2025, duagon recorded a compound annual growth rate of around 15%. Knorr-Bremse expects this performance to continue and forecasts an operating EBIT margin of around 16% in 2026, excluding integration costs. From 2028 onwards, the group anticipates EBIT-effective synergies of €5–10 million per year.

Together, Knorr-Bremse’s Selectron business and duagon are expected to generate annual revenue of approximately €250 million, serving vehicle manufacturers, systems integrators and rail infrastructure companies worldwide.