Internationalisation and enlargement of product range
€104.9mn
equity investment
CHF118mn
Revenues 2019 (exp.)
420
Employees 2019

KEY FACTS AT A GLANCE

  • Merger with MEN – Group established as a full-service provider for computing and communication solutions in railway vehicles
  • Leveraged international footprint of Group companies for cross-selling
  • Expansion in Asia ongoing

duagon Holding AG

Investment by
DBAG FUND VII

€104.9mn

DBAG'S INTEREST

€23.8mn

Management-Buy-Out
Shareholders:
DBAG FUND VII

93.9%

EQUITY SHARE BELONGING TO DBAG

21.3%

other shareholders

6.1%

First invested

JULY 2017

REVENUES in CHFmn

 

96

 

2017 (pro forma)

 

103

 

2018 (pro forma)

 

118

 

2019 (exp.)

As of 31 December 2019

duagon has developed long-standing customer relationships and broad-based technological expertise in its niche market. Its strong competitive position and the very positive market drivers provide an ideal environment for above-average growth.

TOM ALZIN
MANAGING DIRECTOR

~70

PER CENT

of systems in railway vehicles will be connected to each other by 2025

PROFILE

duagon Holding AG (duagon), which has its registered office in the Swiss city of Dietikon, was established in 1995 and has since become a leading independent provider of network components for data communication in railway vehicles. The company’s products allow individual railway vehicle systems, such as doors, brakes, air conditioning systems and the primary control computer, to communicate via what is known as the TCN (“train communication network”). This makes it easier to integrate these systems into the train manufacturers’ networks and limits sources of errors in the process. This allows suppliers to concentrate on their core competencies, namely the development of the individual railway vehicle components. duagon products are used by virtually all train manufacturers and system suppliers.

POTENTIAL FOR DEVELOPMENT

duagon has established strong relationships with customers in China, the world’s largest market for railway vehicles, over the last ten years. In order to further exploit growth potential with Chinese customers, the company intends to further expand its local sales network, R&D capacities and supporting functions. India and Japan are additional major railway markets that duagon is targeting by establishing a local sales presence. duagon aims to establish itself as a specialist in providing solutions for data communication in railway vehicles by offering a broader product portfolio and via acquisitions in both the immediate and extended competitive environment. With the acquisition of MEN Mikro Elektronik in May 2018, duagon gained a foothold in mission-critical, rugged computing solutions predominantly for the railway, but also medtech and similarly complex critical automation applications.

FINANCIAL YEAR 2019

The group of companies continued its growth path in 2019, mainly fuelled by increasing Asian and European demand for communication solutions as well as solid year-on-year growth for computing solutions. The successful technological and geographical diversification initiated by the merger with MEN was continued by the add-on acquisition of an Australian provider of communication solutions for rail applications in 2019.

OUTLOOK AND OBJECTIVES

Future growth is expected to be mainly driven by dynamic growth from duagon’s Chinese customer base on top of solid demand from European players, the rollout of Ethernet technology and an improved coverage of previously neglected markets such as India, Japan and the Americas. At the same time, duagon is continuously evaluating attractive add-on opportunities to accelerate strong organic growth and further shape its position as leading provider of embedded electronics in its chosen end markets.

Responsible team member

Tom Alzin
Tom Alzin

Managing Director

Tom Alzin
Name:
Tom Alzin
Telephone:
+49 69 95787-219
E-Mail:

Tom Alzin

Managing Director

Tom Alzin joined Deutsche Beteiligungs AG in 2004 and became a Managing Director in 2011.

He holds a degree in Business Administration from the HEC Lausanne, and also studied at the London School of Economics and Political Science.

Tom Alzin has 15 years of experience in private equity. During that time, he gained a wealth of knowledge, particularly in the mechanical and plant engineering and in the services sector. Tom Alzin was involved in numerous acquisitions and realisations and also in the IPO of Homag. The realisations of Homag and Spheros, subsequent to their very successful development, are two of his most successful transactions. Tom Alzin also led the investment process in FDG, Pfaudler, Schülerhilfe, Telio, Polytech, duagon and Kraft & Bauer and sits on the advisory councils of the companies, which are still part of the DBAG portfolio.

Current portfolio companies

Former portfolio companies

Tom Alzin

Managing Director

+49 69 95787-219
tom.alzin(at)dbag.de