Knorr-Bremse Strengthens Rail Division with Strategic Acquisition of Duagon Group

Acquisition finalized:
With Duagon, Knorr-Bremse is significantly expanding its expertise in electronics, software, and digital solutions for rail transport. | © Knorr-Bremse

(IN BRIEF) Knorr-Bremse has finalized its acquisition of Switzerland-based Duagon Group, strengthening its expertise in rail electronics, embedded software and signaling technology. The deal expands Knorr-Bremse’s position in high-growth rail market segments, brings together around 1,000 electronics and software specialists, and is expected to deliver strong revenue growth, attractive margins and meaningful synergies across research, development and procurement.

(PRESS RELEASE) MUNICH, 8-Jan-2026 — /EuropaWire/ — Knorr-Bremse has completed the acquisition of Duagon Group, a Switzerland-based provider of electronic hardware, embedded software and signaling solutions for the rail industry. The transaction strengthens Knorr-Bremse’s Rail Division and significantly expands its capabilities in digital, electronic and safety-critical technologies for trains and rail infrastructure.

With the integration of Duagon, Knorr-Bremse enhances its position in fast-growing segments of the rail market, particularly in communication, control and signaling systems. The acquisition supports the company’s BOOST strategy, which is focused on driving long-term profitable growth, technological leadership and operational efficiency.

Growth market rail electronics:
With the acquisition, Knorr-Bremse becomes one of the leading suppliers in an attractive market segment. | © Knorr-Bremse

Duagon has delivered strong performance in recent years, recording a compound annual growth rate of approximately 15 percent. Its portfolio includes high-performance electronics, embedded systems and software used by rolling stock manufacturers, system integrators and infrastructure operators. Combined with Knorr-Bremse’s existing rail activities, the enlarged electronics and signaling business is expected to generate annual revenue of around €250 million.

The combined organization brings together around 1,000 specialists in electronics and software engineering. This expanded talent base will enable Knorr-Bremse to accelerate innovation in areas such as next-generation train control and communication systems, digital signaling solutions, and safety-critical track technologies. The acquisition also strengthens Knorr-Bremse’s offerings in its Selectron communication and control solutions and KB Signaling businesses.

Beyond technology expansion, the transaction is expected to unlock substantial synergy potential. Knorr-Bremse anticipates efficiency gains across research and development, procurement and other operational areas, supporting faster development cycles and improved cost structures. Duagon is projected to achieve an operating EBIT margin of around 16 percent in 2026, excluding integration costs, with further margin improvement expected through growth and synergy realization. From 2028 onward, Knorr-Bremse expects EBIT-effective run-rate synergies of €5–10 million annually.

Knorr-Bremse said the acquisition reinforces its role as a Tier-1 partner for comprehensive rail system solutions and positions the group to benefit from long-term growth trends driven by digitalisation, automation and the global expansion of rail transport infrastructure.

About Knorr-Bremse

Knorr-Bremse (ISIN: DE000KBX1006, ticker symbol: KBX) is the global market and technology leader for braking systems and a leading supplier of other rail and commercial vehicle systems. Knorr-Bremse’s products make a decisive contribution to greater safety and energy efficiency on rail tracks and roads around the world. About 30,500 employees at over 100 locations in 30 countries develop and produce innovative solutions and services that meet the highest technological standards. In 2024, Knorr-Bremse’s two divisions together generated revenues of approximately € 7.9 billion. For 120 years, the Company has been at the cutting edge of its industries, driving innovation in mobility and transportation technologies with a leading edge in connected system solutions. Knorr-Bremse is one of Germany’s most successful industrial companies and profits from the key global megatrends: urbanization, sustainability, digitalization, and mobility.

Media Contacts:

Julian Ebert
Spokesperson Rail Mobility
julian.ebert@knorr-bremse.com
+49 89 3547 1497

Andreas Spitzauer
Head of Investor Relations
andreas.spitzauer@knorr-bremse.com
+49 89 3547 0593

SOURCE: Knorr-Bremse