#Sweden #Stockholm #Software #Hexagon #Octave

Introduction

Hexagon AB, a leader in measurement technology, has announced the upcoming spin-off of its divisions dedicated to Asset Lifecycle Intelligence and Safety, Infrastructure, and Geospatial sectors. This new venture will operate under the name 'Octave', aiming to provide innovative software solutions that leverage data for improved decision-making within organizations.

Key Highlights

• - Name Announcement: The decision to brand the new company as Octave symbolizes a commitment to enhancing and optimizing customer outcomes.
• - Company Structure: Octave will encompass not only the core divisions that are being spun off but also integrate ETQ from the Manufacturing Intelligence division and Bricsys from the Geosystems division.
• - Focused Offerings: As a pure-play software and Software as a Service (SaaS) entity, Octave will assist customers in making informed, data-driven decisions across various sectors, ultimately improving their operational efficiency and incident response capabilities.

Executive Insights

Mattias Stenberg, the current President of Hexagon's relevant divisions and the future CEO of Octave, expressed confidence in the new company’s potential to tap into significant growth opportunities. He stated, “Octave will possess the depth, scale, and expertise necessary to capitalize on software and services opportunities across multiple sectors.”

Financial Overview

As of December 31, 2024, the combined workforce for Octave is around 7,200 employees. The entity generated an estimated revenue of approximately EUR 1,448 million with an adjusted operating margin of about 31%. These financial metrics illustrate Octave's robust foundation that will support its future ambitions.

Timeline for Spin-Off

The Hexagon Board expects to finalize the spin-off process in the first half of 2026, contingent on approval from relevant stakeholders and the fulfillment of additional conditions necessary for such transitions. The separation process will involve detailed financial considerations, which Hexagon will communicate to stakeholders in due course.

Looking Ahead

The evolution of Octave represents a strategic shift for Hexagon AB, setting the stage for a focused approach in the dynamic landscape of software solutions. Stakeholders can anticipate further details regarding the operational structure and offerings as the separation progresses.

For more information about Octave and its upcoming initiatives, interested parties can visit octave.com.

Conclusion

The launch of Octave is an exciting development for Hexagon AB and the broader industries in which it operates. As the company transitions into a stand-alone entity, its focus on intelligence-driven software solutions is expected to drive significant advancements in how organizations utilize data.

For further inquiries, Keri Tomsic from Hexagon Corporate Communications can be reached at +1 404.725.3964, while Tom Hull from Investor Relations is available at +44 7442 678 437.