Hexagon's Strategic Acquisition of Waygate Technologies: A Major Step in Non-Destructive Testing

Hexagon Expands Presence in Non-Destructive Testing Market

Hexagon AB, a renowned leader in precision measurement technology, has made headlines with its recent announcement to acquire Waygate Technologies, a prominent player in the non-destructive testing (NDT) sector. This acquisition not only positions Hexagon as a major global provider of NDT solutions but also extends its precision measurement capabilities significantly across various industrial applications.

Acquisition Overview

On April 13, 2026, Hexagon finalized a definitive agreement to acquire Waygate Technologies from Baker Hughes for approximately $1.45 billion. Headquartered in Germany, Waygate has established itself as a leading force in computed tomography (CT), radiography, and remote visual inspection (RVI), boasting about 1,500 employees and generating around $630 million in annual revenue. With its stronghold across key sectors like aerospace, automotive, and energy, Waygate’s integration into Hexagon's existing operations is expected to create a uniquely collaborative environment for precision measurement and inspection.

A Natural Evolution

The acquisition underscores Hexagon’s commitment to expanding its Manufacturing Intelligence (MI) Business Area into NDT solutions, signifying a natural evolution from traditional precision measurement capabilities to a holistic approach that encompasses quality assurance from the surface to the interior of components. Anders Svensson, President and CEO of Hexagon, emphasized how Waygate’s technological advancements and established customer relationships complement Hexagon’s initiatives.

By combining Waygate Technologies' industry-leading inspection technologies with Hexagon's suite of measurement hardware, analysis software, and production quality tools, Hexagon aims to enhance its customer offerings significantly. The transaction also outlines opportunities for cost optimization and margin improvement within Waygate's operations, indicating a bright future for the merged entity.

Strategic Advantages

Waygate’s diverse portfolio features a sound classification of businesses according to Hexagon's operational model. The radiography and RVI sectors are positioned as profitability assets with tremendous margin expansion potential. The company's expertise in high-end video borescopes helps to establish its number one position, particularly in the aerospace maintenance, repair, and overhaul (MRO) market. In contrast, ultrasonic testing and imaging solutions are categorized as stability assets, where Hexagon is expected to implement strategies for performance enhancement.

This merger creates a powerful synergy that leverages Hexagon's core strengths in manufacturing intelligence and integrates them with Waygate’s innovative inspection technologies. The combined capabilities will cater to increased customer demands for comprehensive inspection solutions that align both surface and interior quality assessments.

Financial Dynamics

According to financial projections, Waygate Technologies achieved a revenue of approximately $630 million with a notable EBIT margin of around 10% in the fiscal year 2025. The strategic alignment between Waygate's radiography platforms and Hexagon's existing product lines opens up new pathways for revenue generation and operational efficiencies.

Hexagon's plans for leveraging manufacturing localization and utilizing existing infrastructures can result in significant cost savings and heightened profitability across the board. The acquisition will also pave the way for Hexagon to strengthen its presence in recurring asset integrity testing markets driven by regulatory mandates and fleet utilization, thereby ensuring long-term sustainability and growth.

Conclusion

As Hexagon moves forward with the acquisition of Waygate Technologies, the anticipated integration of their operations promises to create a new benchmark in the non-destructive testing landscape. With strategic directions aimed at optimizing performance and expanding market reach, the transaction offers a forward-looking pathway not only for Hexagon but also for its customers seeking state-of-the-art measurement and inspection solutions. The upcoming financial closing and operational integration signal an exciting era for both companies, fundamentally transforming how quality assurance is approached in manufacturing and engineering sectors.