Hexagon AB Expands Into Non-destructive Testing With $1.5 Billion Acquisition of Germany's Waygate Technologies
Hexagon AB (HEXA-B.ST) is poised to build a precision measurement and inspection platform through the acquisition of German non-destructive testing company Waygate Technologies in a definitive deal worth $1.45 billion.Nasdaq-listed energy technology company Baker Hughes will be paid in cash on a debt-free basis for the sale of Waygate's remote visual inspection, ultrasound, radiography, and imaging solutions portfolios, as well as all assets of the business, according to two separate filings on Monday.The target company, which generated revenue of $630 million in 2025, will merge into Hexagon's manufacturing intelligence division, boosting its portfolio while "materially" raising Waygate's margins."The acquisition marks a significant expansion of Hexagon's Manufacturing Intelligence (MI) Business Area into the NDT market - a space Hexagon views as a natural evolution of its core precision measurement capabilities, extending quality assurance from the surface of a component to its interior geometry," Hexagon said. "Alongside the attractive expansionary market opportunity and the strategic fit, the transaction represents a compelling value creation opportunity, with a clear pathway to materially improve Waygate's margins through strategic actions, manufacturing optimisation, China localisation, and revenue synergies across the combined customer base."Additionally, the transaction will mark the Swedish measurement technologies company's entry into the aerospace maintenance, repair, and overhaul market through Waygate's remote visual inspection business. Hexagon MI will gain exposure into recurring asset integrity testing markets, which are powered by fleet utilization and regulatory requirements rather than capital investment cycles.Hexagon anticipates the acquisition will evolve the company into a "leading" global provider of NDT solutions, with the extension of precision measurement to the inside of components from their surface and expanding Hexagon's footprint from the production floor into the MRO market. With the enhanced scale and technology, Hexagon said it will be able to pursue further bolt-on opportunities across adjacent inspection modalities.Closing of the deal is slated for the second half of 2026, subject to customary requirements and regulatory clearances. Hexagon plans to fund the purchase using cash and existing debt.Hexagon shares traded 1% lower in Stockholm at midday on Monday.