Hexagon to Acquire Rocscience: Bridging Advanced Simulation and Real-World Monitoring

Hexagon AB has publicly announced a significant step in engineering and geotechnical analysis by entering into an agreement to acquire Rocscience. Headquartered in Toronto, Canada, Rocscience is recognized for its cutting-edge software that aids in geotechnical and civil engineering analysis. The acquisition is poised to fortify Hexagon's Infrastructure Geospatial Business Area, particularly within its Radar Monitoring Division.

Enhancing Safety and Productivity in Engineering

The need for early detection and understanding of geological risks is critical in sectors like mining and infrastructure. Rocscience’s tools are designed to model the behavior of rocks, soil, and various structures under a multitude of conditions. This includes analyzing slope stability and ground movements, as well as assessing critical infrastructure such as tunnels and dams. The software is not only widely used in civil engineering but also spans across approximately 125 countries. Clients leverage Rocscience’s capabilities to streamline risk evaluations, thereby enhancing safety and confidence in decision-making.

Rocscience employs AI-assisted workflows, complete with natural-language interfaces that improve the accessibility and efficiency of high-level engineering modeling and analysis. This integration of advanced technology meets the increasing demands for safety and optimization in engineering projects.

Capitalizing on Complementary Technologies

The merger of Hexagon's advanced sensor technologies with Rocscience's analytical models ushers in a new era of operational efficiency. Hexagon specializes in continuous monitoring through its sensors, including radar systems that gather real-time data. This data plays a vital role in understanding conditions on the ground, which can then be modeled using Rocscience's predictive software. The combination of these technologies effectively dismantles traditional barriers between observational actions and model-based decisions.

With this acquisition, Hexagon aims to establish a continuous feedback loop. Live sensor data will automatically inform and update engineering models throughout the lifecycle of projects—from design and construction to ongoing operational phases. For engineers and project managers, this means quicker detection of potential issues, faster interventions, and a significant reduction in analysis time—all contributing to improved safety and enhanced productivity.

Looking Ahead: Robust Financial Growth

The acquisition is not just a technological merger; it also presents promising financial prospects. Rocscience is on track to generate revenue approaching $50 million in the calendar year 2026. Remarkably, over 80% of its revenue is expected to come from annual recurring sources, indicating a stable and growing business model. The integration of Rocscience's operations into Hexagon is projected to be profitable from the onset, with EBITAC margins exceeding 40%.

Hexagon's President of Infrastructure Geospatial, Henning Sandfort, remarked on the acquisition stating, "Rocscience possesses a remarkable team that has created a robust business marked by high customer satisfaction. Their software aligns seamlessly with our sensor and monitoring solutions, particularly in mining and increasingly within civil applications. By merging the measurement capabilities of our sensors with Rocscience’s predictive models, we can empower clients to transition from mere data capture to knowledgeable decision-making with greater assurance."

Conclusion

As the engineering landscape continues to evolve, the acquisition of Rocscience by Hexagon underscores a strategic move toward a safer and more productive future in infrastructure and geotechnical projects. This partnership not only enhances Hexagon's product offerings but also strengthens its position as a market leader in employing technology to solve complex engineering challenges. The deal is expected to close in the fourth quarter of 2026, subject to standard conditions, and is valued at an enterprise worth of $535 million—cash-free and debt-free.

For any queries pertaining to this acquisition, stakeholders can reach out to Tom Hull, Head of Investor Relations, or Anton Heikenström, Investor Relations Manager at Hexagon AB.