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paragon AG: paragon AG takes over SphereDesign GmbH

DGAP-News: paragon AG / Key word(s): Acquisition
paragon AG: paragon AG takes over SphereDesign GmbH

23.02.2015 / 16:06

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paragon AG takes over SphereDesign GmbH

- Group activities extended towards digital displays

- Specialist in development of display instruments

- Cockpit segment boosted with second development site

Delbrück, February 23, 2015 - 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 EUR 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.