Deutsche Beteiligungs AG Sells duagon Amid Challenging Markets

Deutsche Beteiligungs AG (DBAG) has successfully exited its investment in duagon, an embedded hardware and software provider for rail applications. The stake, held by DBAG Fund VII, was sold to Knorr-Bremse AG, the leader in braking and rail technology. The transaction awaits regulatory approval. Duagon's enterprise value is estimated at €500 million, approximately 18 times its EBIT.

Acquired in 2017, duagon has grown into a leader in rail electronics. DBAG expanded it through strategic acquisitions, boosting sales from €20 million in 2017 to an expected €175 million in 2025. This sale underscores DBAG’s expertise in realizing value from mid-market IndustryTech assets.

The transaction is strategically positive for DBAG, supporting its reputation as a disciplined value creator. The company anticipates a €25-35 million gain from this co-investment. With attractive valuations, DBAG maintains a BUY rating with a target price of €39 per share.