Hexagon's Strategic Acquisition of Waygate Technologies Enhances Market Reach

Hexagon Completes Acquisition of Waygate Technologies

Hexagon, a recognized global leader in measurement technologies, recently announced the completion of its acquisition of Waygate Technologies, a prominent player in the domain of non-destructive testing (NDT). This strategic acquisition, finalized on November 1, 2026, marks a significant milestone in Hexagon's expansion efforts within the Manufacturing Intelligence Business Area.

About Waygate Technologies

Waygate Technologies has built a solid reputation in the industrial sector, particularly known for its expertise in industrial radiography, computed tomography (CT), remote visual inspection (RVI), and ultrasonic testing and imaging solutions. With a legacy of over 130 years in inspection expertise, the company operates approximately 25 locations worldwide and boasts a workforce of roughly 1,500 employees. Its impressive revenue of about 630 million USD in the fiscal year 2025 further emphasizes its dominant position in the market.

Strategic Implications of the Acquisition

The acquisition of Waygate Technologies is poised to significantly enhance Hexagon’s offerings in the non-destructive testing and maintenance, repair, and operations (MRO) sectors. By integrating Waygate's advanced CT systems with Hexagon's existing Volume Graphics software and metrology portfolio, the company aims to deliver a comprehensive end-to-end solution for quality assurance throughout the product lifecycle.

However, the implications extend beyond mere product offerings. Based on pro forma figures for fiscal year 2025, it is expected that the acquisition may initially dilute Hexagon's Manufacturing Intelligence Business Area's margin by approximately 300 basis points and the overall Group margin by about 150 basis points. Hexagon acknowledges these challenges but is confident in its strategy to restore and exceed the target EBITAC margin range of 21-24% for Waygate Technologies through a series of initiatives, including leveraging Hexagon's robust operating model and integrating local manufacturing processes.

Future Prospects

Anders Svensson, President and CEO of Hexagon, expressed enthusiasm about the newly formed partnership. In his statement, he remarked, “Completing this acquisition marks the start of an exciting new chapter for Hexagon Manufacturing Intelligence Business Area. Waygate Technologies brings world-class inspection technology and loyal customer relationships. We are delighted to welcome the Waygate team to Hexagon and look forward to working together to serve our customers and improve performance over the medium term.”

With Waygate now fully integrated into Hexagon's organizational structure, the focus will shift towards maximizing synergies and leveraging the strengths of both companies. The enterprise value of the transaction is estimated at around 1.45 billion USD, financed through existing cash and debt facilities, indicating that Hexagon is committed to maintaining a strong balance sheet even amidst its expansion endeavors.

Furthermore, Hexagon anticipates transaction, carve-out, and integration-related costs associated with the acquisition to be roughly 50 million EUR. Moving forward, stakeholders can expect to see how this acquisition transforms Hexagon's operational capabilities and customer offerings, particularly in sectors relying heavily on advanced inspection technologies.

In conclusion, Hexagon’s acquisition of Waygate Technologies positions the company strategically in an increasingly competitive landscape. As the manufacturing and quality assurance markets continue to evolve, this acquisition could ultimately provide Hexagon with a significant edge in delivering innovative solutions tailored to meet the complex demands of its clients.

For more information about this acquisition and its implications, please visit Hexagon's Investor Relations page.