Knorr-Bremse strengthens rail electronics and signaling with Duagon acquisition
Knorr-Bremse AG has finalized the acquisition of Duagon Group, expanding its technological capabilities and growth potential in the global rail market.
www.knorr-bremse.com
Knorr-Bremse has completed the purchase of Duagon Group, headquartered in Dietikon, Switzerland, marking a strategic step in strengthening its Rail Division. The acquisition significantly enhances Knorr-Bremse’s expertise in embedded electronics, software, and signaling technology for trains and rail infrastructure, supporting profitable growth in a market segment with above-average long-term expansion.
Strategic context and rationale
The acquisition represents a further milestone in Knorr-Bremse’s BOOST strategy, which is focused on safeguarding long-term competitiveness and financial strength. By integrating Duagon, Knorr-Bremse expands its presence in high-growth, high-margin segments of railway electronics and signaling, areas that are increasingly critical to the digital transformation of rail transport.
Duagon has established itself as a leading supplier of electronic hardware, software, and system solutions for the rail industry, serving rolling stock manufacturers, system integrators, and infrastructure operators.
Technology and portfolio expansion
With Duagon, Knorr-Bremse significantly broadens its expertise in electronics, software, and digital solutions. The combined organization brings together around 1,000 specialists in electronics and software development, creating a strong foundation for advancing next-generation control, communication, and signaling systems.
Key focus areas include custom electronic solutions and microprocessors for high-performance train control and communication systems, as well as safety-critical components for signaling and track technology. The acquisition also reinforces Knorr-Bremse’s business units in communication and control solutions (Selectron) and rail signaling technology (KB Signaling), strengthening its position as a Tier 1 system partner for rail transport.
Synergies and operational impact
Knorr-Bremse expects the integration of Duagon to generate significant synergies across research and development, purchasing, and other operational areas. By consolidating expertise and leveraging shared resources, the group aims to accelerate innovation cycles, increase development speed, and improve efficiency across multiple lines of business.
From a financial perspective, Duagon is expected to achieve an operating EBIT margin of around 16% in 2026, excluding integration costs. Knorr-Bremse anticipates additional EBIT-effective run-rate synergies of €5–10 million per year from 2028 onward, driven by revenue growth and cost efficiencies.
Growth outlook
Duagon recorded a compound annual growth rate of approximately 15% between 2022 and 2025, a trajectory Knorr-Bremse expects to sustain in the coming years. Following the acquisition, Knorr-Bremse becomes a leading supplier in a rail electronics and signaling segment characterized by strong structural growth.
Together, the Selectron and Duagon businesses are expected to generate annual revenues of around €250 million, supported by attractive profitability. The acquisition positions Knorr-Bremse to play a central role in shaping the digital future of rail transport, combining advanced electronics, software expertise, and system-level integration capabilities.
www.knorr-bremse.com
