Paragon Becomes Babtec's New Growth Partner
(Munich/Wuppertal) – The Munich-based private equity firm Paragon Partners is investing in the continued growth of Babtec Informationssysteme GmbH. The agreement was signed on August 8, 2026. The two shareholders, Michael Flunkert and Waios Kastanis, will retain stakes in the company and will guide the next phase of 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 consolidates product-, process-, and organization-wide quality on a unified platform for quality management (QMS) and integrated management systems (IMS) – ranging 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.
Technologically, Babtec has always been one of the industry’s innovation leaders: 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 handling, and provides users with context-based assistance – directly within the platform, while the user retains decision-making authority. At the same time, Babtec is driving the expansion of its cloud and subscription offerings.
“In Paragon, we have found a long-term partner who recognizes the potential of our platform and shares our vision. The fact that we both remain 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, 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 aim to accelerate the cloud and AI roadmap, drive national and international expansion, and support Babtec with capital, our network, and operational expertise.”
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. Headquartered in Wuppertal, the company has been setting standards in the digitalization of quality processes since 1994 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.
- About Paragon
Paragon is an owner-managed, private group of companies that, since its founding in 2004, has been investing in medium-sized companies headquartered in the DACH region. 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 based in Munich and currently manages over €2.4 billion in equity capital. For more information, visit www.paragon.de/en.