Paragon Becomes Babtec’s New Growth Partner

Munich/Wuppertal – The Munich-based invest­ment firm Para­gon Part­ners is inves­t­ing in the contin­ued growth of Babtec Infor­ma­ti­ons­sys­teme GmbH. The two share­hol­ders, Michael Flun­kert and Waios Kasta­nis, will retain their stakes in the company and will guide the next phase of its deve­lo­p­ment toge­ther with Paragon. 

Babtec is a leading provi­der of inte­gra­ted quality manage­ment soft­ware in the DACH region. Foun­ded in 1994 and head­quar­te­red in Wupper­tal, the company brings toge­ther product, process, and orga­­ni­za­­tion-wide quality on a unified plat­form for quality manage­ment (QMS) and inte­gra­ted manage­ment systems (IMS)—from proac­tive quality plan­ning and risk analy­sis in product deve­lo­p­ment, through inspec­tion, complaint, and audit manage­ment, to colla­bo­ra­tion with suppliers. 

With over 30 years of indus­try expe­ri­ence, Babtec serves more than 1,300 custo­mers in quality-criti­­cal indus­tries and employs appro­xi­m­ately 230 people at loca­ti­ons in Germany, Austria, Switz­er­land, and Spain.

From a tech­no­lo­gi­cal stand­point, Babtec has always been one of the industry’s leading inno­va­tors: Through the Babtec­Qube cloud plat­form, compa­nies and their suppli­ers colla­bo­rate directly in shared quality processes—an approach that is unique in the market. With the new AI agent Quorix, arti­fi­cial intel­li­gence is making its way into daily quality work­flows: Quorix analy­zes docu­ments and defect images, supports complaint proces­sing, and provi­des users with context-speci­­fic assistance—directly within the plat­form, while the user reta­ins decis­­ion-making autho­rity. At the same time, Babtec is driving forward the expan­sion of its cloud and subscrip­tion offerings. 

“In Para­gon, we have found a part­ner with a long-term perspec­tive who reco­gni­zes the poten­tial of our plat­form and shares our vision. The fact that we are both remai­ning share­hol­ders sends a clear signal: We believe in the next phase of Babtec—in the strength of our team, our tech­no­logy, and our custo­mer relationships—and we are shaping it toge­ther with Para­gon,” say Michael Flun­kert and Waios Kasta­nis, part­ners and co-CEOs of Babtec.

“Quality is incre­asingly beco­ming a compe­ti­tive factor for indus­trial compa­nies, and Babtec, with its end-to-end plat­form, is built precis­ely for that purpose,” says Chris­tian Bettin­ger, a part­ner at Para­gon Part­ners. “Toge­ther with the share­hol­ders and manage­ment, we aim to acce­le­rate the cloud and AI road­map, drive natio­nal and inter­na­tio­nal expan­sion, and support Babtec with capi­tal, our network, and opera­tio­nal expertise.”

The closing of the tran­sac­tion is still subject to appr­oval by the rele­vant anti­trust authorities.

About Babtec

Babtec is a leading provi­der of inte­gra­ted soft­ware for quality manage­ment (QMS) and inte­gra­ted manage­ment systems (IMS) in the DACH region. Since 1994, the Wupper­­tal-based company has been setting stan­dards in the digi­tiza­tion of quality proces­ses and today supports more than 1,300 compa­nies in consis­t­ently mana­ging quality across products, proces­ses, and the supply chain—from plan­ning to networked colla­bo­ra­tion with suppli­ers. — www.babtec.de

About Para­gon

Para­gon is an owner-mana­­ged, private group of compa­nies that has been inves­t­ing in medium-sized compa­nies in German-spea­king count­ries since its foun­ding in 2004. Para­gon works closely with its port­fo­lio compa­nies to ensure sustainable growth and improve opera­tio­nal proces­ses. The Para­gon port­fo­lio spans various indus­tries and curr­ently compri­ses 12 compa­nies. Para­gon is head­quar­te­red in Munich and curr­ently mana­ges over €2.4 billion in equity capi­tal. Further infor­ma­tion about the company is available at www.paragon.de. —