BERLIN (dpa-AFX) - Knorr-Bremse AG (KNRRY.PK, KNBHF.PK), a German maker of braking systems for rail and vehicles, said on Tuesday that it has concluded a strategic cooperation and investment deal with Nexxiot, a Swiss firm focused on upgrading railcars and containers with Internet of Trains or IoT technology.
As part of the deal, Knorr-Bremse has also bought a minority stake in Nexxiot, thus becoming its largest shareholder allowing the German firm to further leverage digital, data-driven business models, including subscription-based rail services and Software as a Service (SaaS) for rail customers.
The agreement allows Munich-based firm to make full use of Nexxiot's sensor technology and data ecosystem and to target the growth markets of digitalization and automation.
Jürgen Wilder, Member of the Executive Board of Knorr-Bremse, said: '.By combining our systems technology with Nexxiot's digital ecosystem, we're creating a win-win scenario that will boost vehicle availability and lower the total cost of fleet ownership by leveraging a new generation of data-based services.'
Knorr-Bremse has invested around 60 million euros in Nexxiot to build further market share in the rail industry.
Looking ahead, Knorr-Bremse expects its digital business to grow significantly by 2027, to around 200 million euros of the Rail Division's revenue.
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