Drake Star Acts as Exclusive Financial Advisor to Babtec on its Strategic Growth Partnership with Paragon Partners

Wuppertal | Munich | August 17th, 2026 – Munich-based private equity firm Paragon Partners has agreed to invest in the continued growth of Babtec Informationssysteme GmbH (“Babtec”). The agreement was signed on August 8^th, 2026. The two founders, Michael Flunkert and Waios Kastanis, remain shareholders in the company and will support the next phase of development together with Paragon.

Drake Star acted as exclusive financial advisor to Babtec and its shareholders on this transaction.

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 single end-to-end platform for quality management (QMS) and integrated management systems (IMS) – from forward-looking quality planning and risk analysis in product development, through inspection, complaint, and audit management, to collaboration with suppliers.

With more than 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.

In terms of technology, Babtec has always been among the industry's innovators: through the BabtecQube cloud platform, companies and their suppliers collaborate directly on shared quality processes – an approach that is unique in the market. With the new AI agent Quorix, artificial intelligence is entering everyday quality workflows: Quorix analyzes documents and defect patterns, supports complaint processing, and provides users with context-related assistance – directly within the platform, while decision-making authority remains with the user. In parallel, Babtec is driving forward the expansion of its cloud and subscription offering.

“With Paragon, we have found a long-term-oriented partner who recognizes the potential of our platform and shares our vision. The fact that both of us remain shareholders 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. We would also like to thank Ralf Philipp Hofmann and the team at Drake Star. It was a pleasure working with them on this project – their in-depth understanding of our business, broad industry network and outstanding deal-making skills were essential to this successful outcome,” said 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 exactly for that,” commented Christian Bettinger, Partner at Paragon Partners. “Together with the founders and the management, we want to accelerate the cloud and AI roadmap, drive national and international expansion, and support Babtec with capital, network, and operational experience.”

Ralf Philipp Hofmann, Managing Partner & Co-Founder of Drake Star, added: “In an environment where quality management is becoming an increasingly strategic priority, Babtec's integrated platform and deep, long-standing customer relationships make it exceptionally well positioned for its next phase of growth. The partnership with Paragon lays a strong foundation for the company's continued growth, technology leadership and international expansion. We would like to thank Michael Flunkert, Waios Kastanis and the entire Babtec team for their trust and the excellent collaboration throughout this process.”

Completion of the transaction remains subject to approval by the relevant antitrust authorities.

Drake Star Team: Ralf Philipp Hofmann, Maximilian von Bodman, Josef Osterhammer, Pablo Lundershausen, Roman Bauer, Christopher von Eickstedt

Inquiries

For further inquiries, please contact:

Ralf Philipp Hofmann

Managing Partner & Co-Founder | Drake Star

ralf.hofmann@drakestar.com

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 company, headquartered in Wuppertal, has been setting standards in the digitalization of quality processes and today supports more than 1,300 companies in managing quality end-to-end across product, process, and supply chain – from planning to networked collaboration with suppliers.

For more information, visit: www.babtec.com.

About Paragon Partners

Paragon is an owner-managed, private corporate group that, since its founding in 2004, has invested in mid-sized companies headquartered in the DACH region. Paragon works closely with its portfolio companies to secure 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.

For more information, visit: www.paragon.de/en/.

About Drake Star

Drake Star is an award-winning global tech investment bank that has completed over 500 transactions since 2003. The Drake Star global team of experienced professionals and senior advisors across offices in New York, Munich, London, Paris, Los Angeles, San Francisco, Berlin, West Palm Beach and Dubai* focuses on mergers & acquisitions and corporate finance services worldwide in Software/SaaS, Artificial Intelligence, HR Tech, Digital Services, FinTech, Digital Media, Industrial Tech, Consumer & Retail Tech and Mobility & Sustainability.

Drake Star is the marketing name for the global investment bank Drake Star Partners Limited and its subsidiaries and affiliates. In the USA, all securities are transacted through Drake Star Securities LLC. In the USA, Drake Star Securities LLC is regulated by FINRA and is a member of SIPC. Drake Star UK Limited (FRN 942020) is an appointed representative of Razlin Ltd (FRN 730805), which is authorized and regulated by the FCA. © 2026 Drake Star Partners Limited.

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