Paragon becomes Babtec’s new growth partner

Babtec is a leading provider of integrated quality management software in the DACH region. Founded in 1994 and headquartered in Wuppertal, the company combines product, process and organization-wide quality on a single, end-to-end platform for quality management (QMS) and integrated management systems (IMS) – from predictive 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 from quality-critical industries and employs around 230 people at locations in Germany, Austria, Switzerland and Spain.

Technologically, Babtec has always been among the industry’s innovation leaders: via the cloud platform BabtecQube, companies and their suppliers collaborate directly in shared quality processes – an approach unique in the market. With the new AI agent Quorix, artificial intelligence is entering day-to-day quality workflows: Quorix analyzes documents and defect patterns, supports complaint handling and gives users context-based assistance – directly in the platform, while decision-making authority remains with the user. In parallel, Babtec is advancing the expansion of its cloud and subscription offering.

“In Paragon, we have found a long-term-oriented partner who recognizes the potential of our platform and shares our vision. The fact that we both remain invested is a deliberate 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, shareholders 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,” says Christian Bettinger, Partner at Paragon Partners. “Together with the shareholders and management, we want to accelerate the cloud and AI roadmap, drive national and international expansion, and support Babtec with capital, network and operational experience.”

Completion of the transaction remains subject to clearance 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 set standards in the digitalization of quality processes and today helps more than 1,300 companies manage quality end-to-end across product, process and supply chain – from planning to networked collaboration with suppliers. More information at www.babtec.com

About Paragon

Paragon is an owner-managed private investment group that has been investing in medium-sized companies across the German-speaking region since its founding in 2004. Paragon works closely with its portfolio companies to drive sustainable growth and improve operational performance. Its portfolio spans a broad range of industries and currently comprises 12 companies. Headquartered in Munich, Paragon currently manages more than €2.4 billion of equity capital. Further information is available at www.paragon.en