Hexagon (HEXA) M&A announcement summary

Deal rationale and strategic fit

• Acquisition of a leading global NDT platform for $1.45 billion expands precision measurement from surface to interior, entering regulated, high-barrier markets like Aerospace, Defense, and MRO.

• Completes the measurement chain from surface to internal inspection, integrating with existing metrology and CT analysis solutions for unified quality workflows.

• Diversifies revenue into recurring, utilization-driven MRO markets, reducing reliance on CapEx cycles and broadening reach into asset integrity testing.

• Reinforces long-term competitive position by integrating complementary technologies and customer bases, matching offerings of key competitors.

• Aligns with strategy to offer complete quality assurance solutions across product lifecycles and enables further bolt-on opportunities.

Financial terms and conditions

• Transaction valued at $1.45 billion, to be paid in cash and on a debt-free basis, with expected closing in the second half of 2026.

• Waygate's 2025 revenue is projected at $630 million with an EBIT margin of 10%.

• Radiography and RVI segments contributed $330 million in revenue at a 16% EBIT margin.

• Acquisition to be financed with cash and existing debt capacity.

• Transaction is a carve-out from Baker Hughes, with transition service arrangements to be agreed pre-close.

Synergies and expected cost savings

• Significant cross-selling opportunities with existing metrology and CT analysis software across the combined customer base.

• Margin expansion anticipated through China manufacturing localization, especially in Radiography.

• Integration with proprietary software (Volume Graphics) and CT hardware to drive revenue and operational synergies.

• Margin improvement expected through manufacturing optimisation and operational leverage.

• Strategies to improve performance in Stability assets, including potential strategic reviews.