Sweden's Hexagon Signs $535 Million Agreement to Acquire Geotechnical Engineering Software Company

en.Wedoany.com Reported - On October 9, Swedish measurement technology company Hexagon announced that it has signed an acquisition agreement with TA Associates and the founders and management of Rocscience to acquire Canadian geotechnical analysis software company Rocscience at an enterprise value of $535 million. The transaction is valued on a cash-free, debt-free basis and is expected to close in the fourth quarter of 2026. Upon completion of the acquisition, Rocscience will be integrated into Hexagon's Radar & Monitoring business unit.

Headquartered in Toronto, Canada, Rocscience primarily develops numerical analysis software for rock, soil, and engineering structures. Its products are used for mine slope stability, surface displacement, underground engineering, and geotechnical structure performance analysis. Its software serves customers in the mining, civil engineering, and energy industries across approximately 125 countries, and offers AI-assisted modeling and analysis capabilities including natural language interaction.

Hexagon plans to combine Rocscience's engineering simulation and prediction technology with its existing ground monitoring, radar monitoring, and measurement systems. The related technology involves using displacement and deformation data collected by on-site sensors, combined with geotechnical numerical models, to conduct slope stability assessments, ground movement analysis, and engineering structure monitoring, with applications including open-pit mines, tunnels, dams, and other infrastructure.

According to the transaction announcement, Rocscience is expected to generate revenue approaching $50 million in 2026, with annual recurring revenue accounting for more than 80% of total revenue and EBITAC margin exceeding 40%. Hexagon expects the transaction to be accretive to group net profit from the time of closing.