#Sweden #Stockholm #Hexagon #Geomagic #3D Systems

Hexagon's Strategic Acquisition of Geomagic Software

In a significant move towards enhancing its technological capabilities, Hexagon, a leader in digital solutions for manufacturing, announced today the acquisition of the Geomagic software suite from 3D Systems for $123 million. This strategic purchase is set to bolster Hexagon’s portfolio in 3D modeling and inspection functionalities, pivotal for modern manufacturing processes.

Overview of the Geomagic Suite

The Geomagic suite, which includes notable products such as Design X, Control X, Freeform, and Wrap, provides powerful tools for creating high-quality 3D models by processing data from various sources including laser scans. These tools automate the conversion of 3D scan data into digital models, enabling manufacturers to create history-based parametric Computer-Aided Design (CAD) models to streamline production processes.

Key functionalities of the Geomagic software enable users to:

• - Build Digital Models: Convert physical objects into digital representations efficiently.
• - Initial Design Modifications: Facilitate free-form design processes and allow for adjustments to pre-existing CAD models.
• - Quality Control: Inspect parts for quality assurance using precise measurements.

This acquisition will empower Hexagon Manufacturing Intelligence by integrating these advanced software capabilities with their existing metrology sensors and solutions.

Comments from Leadership

Norbert Hanke, the interim President and CEO of Hexagon, expressed enthusiasm about the acquisition. He stated, "The combination of Geomagic and our existing solutions will further strengthen our market leadership in 3D metrology and reengineering. This demonstrates our ongoing commitment to provide increasingly user-friendly tools that execute complex tasks, allowing our customers to confidently bring innovative products to market swiftly."

Financial Insights and Future Prospects

In terms of financial performance, the Geomagic acquisition is strategically advantageous. The software business had approximately 100 employees in 2023, generating revenues of around $30 million with favorable operating margins. The integration will not only enhance Hexagon's technical offerings but is expected to increase its competitive edge in the fast-evolving manufacturing landscape.

The completion of this transaction is subject to regulatory approvals and other customary conditions anticipated to finalize by the second quarter of 2025.

As Hexagon embarks on this new chapter, the industry watches closely to see how this acquisition will reshape its offerings and solidify its status as a leader in 3D modeling and inspection technologies.

For more information, investors can reach out to Tom Hull, Head of Investor Relations, at Hexagon AB, or Anton Heikenström, Investor Relations Manager, for queries related to this acquisition and its implications.

This acquisition signifies not just an expansion of technology but a forward-looking vision that aims to redefine how manufacturing processes are completed in the digital age, ensuring that quality and efficiency remain at the forefront of the industry.