Sweden's Hexagon Acquires Germany's Waygate Technologies for $1.45 Billion

en.Wedoany.com Reported - On November 2, Swedish measurement technology company Hexagon AB announced the completion of its acquisition of German industrial non-destructive testing company Waygate Technologies, with an enterprise value of approximately $1.45 billion. Waygate was formerly part of the U.S.-based Baker Hughes. Following the completion of the transaction, the business has been formally integrated into Hexagon's Manufacturing Intelligence division, with consolidation effective from November 1.

Waygate Technologies has accumulated more than 130 years of expertise in industrial inspection technology, with operations covering industrial radiography, industrial computed tomography (CT), remote visual inspection (RVI), ultrasonic testing, and imaging solutions. As of the completion of the transaction, the business had approximately 1,500 employees, operated 25 locations worldwide, and generated revenue of approximately $630 million in fiscal year 2025.

Following the acquisition, Hexagon has incorporated Waygate's industrial CT, field radiography, ultrasonic testing, and remote visual inspection technologies into its Manufacturing Intelligence division. The two companies' existing product portfolios will be connected, with Hexagon's coordinate measuring machines, portable measuring devices, 3D scanners, and Volume Graphics metrology software combined with Waygate's internal non-destructive testing technologies to form a product portfolio covering the inspection of external geometry, surfaces, and internal structures of components.

In terms of financial integration, on a pro forma basis for fiscal year 2025, the acquisition is expected to reduce the margin of Hexagon's Manufacturing Intelligence division by approximately 300 basis points and the Group's overall margin by approximately 150 basis points. Hexagon has set a target of raising Waygate's EBITAC margin to the Manufacturing Intelligence division's target range of 21%–24%, and plans to improve profitability through measures including deploying its own operating model, localizing manufacturing, cross-selling, and potential portfolio optimization.

Hexagon stated that the cash consideration for the transaction was financed through cash and existing debt facilities. Transaction costs, divestment costs, and integration costs related to the transaction are expected to be approximately €50 million. Following the completion of the transaction, Waygate will continue to operate within Hexagon's Manufacturing Intelligence division.