DGAP-News: paragon AG / Key word(s): Acquisition

2015-02-23 / 16:06


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

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.

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.

Company profile

Listed in the regulated market (Prime Standard) of Deutsche Börse AG in
Frankfurt am Main, paragon AG develops, produces, and sells advanced
automotive electronics solutions. The portfolio of this direct supplier to
the automotive industry includes products in the following business
segments: Sensors, Acoustics, Cockpit, Electromobility, and Body
Kinematics. Headquartered in Delbrück (North Rhine-Westphalia), paragon AG
has branches in Suhl (Thuringia), Nuremberg (Bavaria), and St. Georgen
(Baden-Württemberg) as well as a sales office in Shanghai (China) and a
subsidiary in Austin (Texas, United States).


paragon AG
Schwalbenweg 29
33129 Delbrück
Tel.: +49 (0) 52 50 - 97 62-0
Fax: +49 (0) 52 50 - 97 62-60
Internet: www.paragon.ag
E-mail: info@paragon.ag

Financial press & investor relations contact
Instinctif Deutschland GmbH
Michael Müller
Tel.:  +49 (0) 221/42075-0
E-mail: michael.mueller@instinctif.com


2015-02-23 Dissemination of a Corporate News, transmitted by DGAP - a
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Language:    English                                                    
Company:     paragon AG                                                 
             Schwalbenweg 29                                            
             33129 Delbrück                                             
Phone:       +49 (0)5250 97 62 - 0                                      
Fax:         +49 (0)5250 97 62 - 60                                     
E-mail:      investor@paragon.ag                                        
Internet:    www.paragon.ag                                             
ISIN:        DE0005558696, DE000A1TND93                                 
WKN:         555869, A1TND9                                             
Listed:      Regulated Market in Frankfurt (Prime Standard); Regulated  
             Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich,  
End of News    DGAP News-Service  
326073 2015-02-23