This transaction represents a strategic corporate acquisition wherein Knorr-Bremse agrees to fully acquire duagon Group. The operation effectively facilitates a complete exit for the historical private equity sponsor, Deutsche Beteiligungs AG (DBAG), from the target's capital structure. Financed entirely through the acquirer's available liquidity and existing credit lines, the deal also includes a potential performance-based earn-out component. The primary strategic rationale underpinning this consolidation is to highly complement Knorr-Bremse's existing safety electronics division with duagon Group's specialized rail signaling technology. This powerful integration is designed to drastically accelerate international growth, generate massive operational and revenue synergies, and solidify the acquirer's undisputed leadership in the global rail market.

DUAGON, which reported an EBITDA margin of LOGIN in 2026, is valued in this transaction at an EV/EBITDA multiple of LOGIN, representing a LOGIN premium to the average currently observed in the Industry & Manufacturing sector (10.9x).

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