Hexagon Announces Major Spin-off of Asset Lifecycle Intelligence Division for Future Growth
Hexagon AB, a prominent leader in measurement technologies, has outlined its strategic direction to spin off its Asset Lifecycle Intelligence (ALI) division. Company officials have confirmed that this significant decision comes after an extensive evaluation by its Board of Directors. On March 4, 2025, Hexagon announced its plans to separate the ALI division and affiliated businesses into a new entity, referred to as 'NewCo'. The spin-off, which is expected to follow a Lex Asea distribution method, is aimed at enhancing the operational efficiency and growth potential of both Hexagon and NewCo.
The timing for this corporate maneuver aligns with Hexagon's aspirations for NewCo to become listed on a U.S. national securities exchange, reflecting its geographical focus and lineage as a former U.S. public company, Intergraph. Furthermore, Hexagon intends to facilitate participation for existing shareholders by establishing a Swedish Depository Receipt program for NewCo, allowing them to engage in potential value creation during this transitional phase.
Ola Rollén, Chairman of Hexagon's Board, expressed optimism regarding the spin-off, asserting that it would enable both entities to leverage their distinct competitive advantages and accelerate growth capabilities. The separation is expected to provide NewCo with the agility needed to adapt its operational strategies and align its focus with market demands, ultimately benefitting stakeholders including employees and shareholders alike.
In light of the strategic re-evaluation of the spin-off's parameters, the Board has expanded NewCo's developmental scope to include Hexagon's Safety, Infrastructure Geospatial (SIG) division. This move marks a significant shift from the initial intention to keep the split limited to the Utilities Infrastructure segment within SIG. The integration expands NewCo's market presence and creates additional synergies by uniting Hexagon’s profitable businesses.
NewCo will position itself as a pureplay software and Software as a Service (SaaS) organization, offering a robust suite of services across asset lifecycle intelligence, safety, infrastructure, and geospatial capabilities, catering to numerous industries. The goal is to harness advanced software solutions that transform complex data into actionable insights, thereby optimizing customer asset management.
Hexagon anticipates that the newly formed entity will operate with a data-centric approach, allowing clients to enhance planning and operational efficiencies while enabling rapid responses to incidents. Mattias Stenberg, who leads Hexagon's ALI division, has been appointed to head NewCo. He shares that the organization is well-prepared to exploit market possibilities as both a software provider and a service-focused company.
As the transition approaches, significant changes in management throughout the divisions will take place, including the retirement of Steven Cost, President of SIG, who has been instrumental in shaping the organization for the past 18 years. His departure signals a new chapter for both Hexagon and the emerging NewCo, as the latter prepares to seize opportunities in both organic growth and acquisitions.
Looking forward, Hexagon remains dedicated to its mission of innovating measurement solutions and developing cutting-edge technology, particularly emphasizing advancements in robotic sensors, AI analytics, and autonomous solutions across sectors such as manufacturing, construction, and agriculture. The comprehensive spin-off plan is anticipated to be formally proposed during a shareholder meeting scheduled for early 2026, contingent upon the prevailing circumstances and regulatory approvals.
In conclusion, the forthcoming spin-off exemplifies Hexagon's commitment to growth and innovation in a rapidly evolving market landscape. By enabling NewCo to unify its diversified software offerings and maintain a distinct market focus, both organizations are poised to advance confidently into the future, addressing the challenges and opportunities inherent in their respective sectors.
The timing for this corporate maneuver aligns with Hexagon's aspirations for NewCo to become listed on a U.S. national securities exchange, reflecting its geographical focus and lineage as a former U.S. public company, Intergraph. Furthermore, Hexagon intends to facilitate participation for existing shareholders by establishing a Swedish Depository Receipt program for NewCo, allowing them to engage in potential value creation during this transitional phase.
Ola Rollén, Chairman of Hexagon's Board, expressed optimism regarding the spin-off, asserting that it would enable both entities to leverage their distinct competitive advantages and accelerate growth capabilities. The separation is expected to provide NewCo with the agility needed to adapt its operational strategies and align its focus with market demands, ultimately benefitting stakeholders including employees and shareholders alike.
In light of the strategic re-evaluation of the spin-off's parameters, the Board has expanded NewCo's developmental scope to include Hexagon's Safety, Infrastructure Geospatial (SIG) division. This move marks a significant shift from the initial intention to keep the split limited to the Utilities Infrastructure segment within SIG. The integration expands NewCo's market presence and creates additional synergies by uniting Hexagon’s profitable businesses.
NewCo will position itself as a pureplay software and Software as a Service (SaaS) organization, offering a robust suite of services across asset lifecycle intelligence, safety, infrastructure, and geospatial capabilities, catering to numerous industries. The goal is to harness advanced software solutions that transform complex data into actionable insights, thereby optimizing customer asset management.
Hexagon anticipates that the newly formed entity will operate with a data-centric approach, allowing clients to enhance planning and operational efficiencies while enabling rapid responses to incidents. Mattias Stenberg, who leads Hexagon's ALI division, has been appointed to head NewCo. He shares that the organization is well-prepared to exploit market possibilities as both a software provider and a service-focused company.
As the transition approaches, significant changes in management throughout the divisions will take place, including the retirement of Steven Cost, President of SIG, who has been instrumental in shaping the organization for the past 18 years. His departure signals a new chapter for both Hexagon and the emerging NewCo, as the latter prepares to seize opportunities in both organic growth and acquisitions.
Looking forward, Hexagon remains dedicated to its mission of innovating measurement solutions and developing cutting-edge technology, particularly emphasizing advancements in robotic sensors, AI analytics, and autonomous solutions across sectors such as manufacturing, construction, and agriculture. The comprehensive spin-off plan is anticipated to be formally proposed during a shareholder meeting scheduled for early 2026, contingent upon the prevailing circumstances and regulatory approvals.
In conclusion, the forthcoming spin-off exemplifies Hexagon's commitment to growth and innovation in a rapidly evolving market landscape. By enabling NewCo to unify its diversified software offerings and maintain a distinct market focus, both organizations are poised to advance confidently into the future, addressing the challenges and opportunities inherent in their respective sectors.
Topics Business Technology）
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