23-02-2015 | Press releases | Corporate & Ad-hoc news
paragon AG takes over SphereDesign GmbH
paragon AG has taken over a 100% stake in SphereDesign GmbH, Bexbach near Saarbrücken, as of January 1, 2015. Furthermore, Markus Barth, to date one of SphereDesign’s managing directors and shareholders, has been appointed as the new director of the Cockpit segment at paragon AG. SphereDesign is a well-established development service provider and system supplier to the automotive industry. With its expertise in control and display elements, it ideally complements paragon AG.
Comments Klaus Dieter Frers, Chairman of the Managing Board of paragon AG: “We have known SphereDesign for years now and already worked closely together in earlier times, a factor that should considerably speed up the integration process. In the past two years, SphereDesign has made another significant leap forward and won major orders. With this takeover, we will be acquiring first-class development expertise and further development capacities for our company. While overseas customers are relying above all on analog display elements, the trend among European premium manufacturers in particular is clearly headed towards digital displays. SphereDesign will significantly boost our technological capabilities in precisely this area and thus substantially enhance our competitive position.”
SphereDesign generated revenue of around € 4 million in fiscal year 2014 and was consistently profitable over the past years. Looking ahead to the coming years, the company has already secured numerous lucrative orders from the automotive industry and expects strong business volume growth. Founded in 2000, SphereDesign GmbH has since continually developed into a recognized partner to leading carmakers. With 26 employees currently, the company is one of only a small number of respected developers of control and display elements in Germany. This segment currently accounts for some 90% of revenue. Among SphereDesign’s largest customers are Daimler und VW, who are also major customers of paragon AG. The parties have agreed to maintain confidentiality concerning the purchase price.
Comments Markus Barth, Managing Director of SphereDesign GmbH: “Our longstanding strengths are to be found above all in the development field. paragon AG in turn has an extremely strong position in its production activities. Joining forces will enable us to have an even stronger market presence in future. Our customers will benefit from the best of both paragon’s and SphereDesign’s worlds. I am very much looking forward to working together.”
Adds Frers: “This transaction will sustainably strengthen our Cockpit segment and optimally position it for the future. Integrating SphereDesign into our Group will make us even more attractive as a technology driver for international customers. We are thus taking a substantial strategic step forwards and making targeted use of further funds from paragon’s bond.”
Alongside Markus Barth, other former managing directors and shareholders of SphereDesign will also take on new roles. Arne Wohlfart will be expanding the Bexbach location as a further central development site for control and display elements in addition to paragon’s location in Nuremberg. Peter Stief will also assume key tasks, including managing paragon’s international plants.