German brake and safety systems giant completes takeover of Swiss electronics specialist, creating a combined force of 1,000 software and electronics experts
Knorr-Bremse has completed its acquisition of Duagon Group, a move set to reshape the competitive landscape for rail electronics and signalling systems across Britain and Europe.
The deal brings together Knorr-Bremse's established position as a Tier 1 supplier to UK train operators and rolling stock companies with Duagon's specialist expertise in embedded electronics, creating a combined electronics and software workforce of around 1,000 people.
For UK rail managers, the acquisition signals the emergence of a strengthened supplier capable of delivering integrated solutions spanning everything from train control systems to trackside signalling technology. The combined entity will generate approximately £210 million in annual revenue from its electronics operations alone.
Marc Llistosella, Knorr-Bremse's Chief Executive, said the acquisition would unlock
"significant business opportunities for fast-growing, high-margin product lines for trains and rail infrastructure."
For procurement teams and engineering managers working on rolling stock projects or infrastructure upgrades, this suggests a supplier with deeper R&D resources and potentially faster development timescales.
Dr Nicolas Lange, who leads Knorr-Bremse's Rail Division globally, emphasised that Duagon's capabilities would particularly benefit the company's Selectron communication and control systems business and its KB Signalling operations. Both product lines feature in numerous UK rail projects, from suburban train fleets to mainline infrastructure schemes.
The merger brings Duagon's expertise in custom microprocessors and high-performance control systems into Knorr-Bremse's portfolio. For engineering teams specifying systems for new trains or signalling upgrades, this could mean access to next-generation digital solutions and safety-critical components developed by a larger, better-resourced supplier.
Knorr-Bremse says it expects to achieve operational synergies worth €5-10 million annually from 2028, driven by consolidated R&D and purchasing power. The company also projects that Duagon will deliver operating margins of around 16% in 2026, rising further through revenue growth and cost efficiencies.
Duagon has achieved compound annual growth of roughly 15% between 2022 and 2025, a rate Knorr-Bremse expects to maintain. For UK customers, this suggests a supplier investing heavily in new technology at a time when Britain's rail industry faces pressure to digitalise ageing infrastructure and roll out new train fleets.
The acquisition forms part of Knorr-Bremse's BOOST strategy, designed to secure the company's long-term market position. For rail industry professionals evaluating long-term supplier relationships, this signals stability and sustained investment in the sector.
Image credit: iStock
