Hexagon moves into non-destructive testing with $1.45bn Waygate deal

Hexagon AB ( ($SE:HEXA.B) ) just unveiled an announcement.

Hexagon AB has agreed to acquire Waygate Technologies from Baker Hughes in a $1.45 billion deal that pushes the Swedish group into the non-destructive testing market and extends its reach from production to maintenance, repair and operations. Waygate, which generates about $630 million in annual revenue and employs 1,500 staff across 25 sites, will bolster Hexagon’s Manufacturing Intelligence business with leading CT, radiography and remote visual inspection platforms.

Hexagon plans to classify Waygate’s radiography and remote visual inspection units as Profitability and Growth assets, targeting margin expansion towards MI business area averages by combining NDT hardware with its own software and global infrastructure. Ultrasonic testing and imaging solutions will be treated as Stability assets, with Hexagon pursuing performance improvements that may include strategic reviews, while management highlights scope for value creation through manufacturing optimisation, China localisation and revenue synergies across overlapping customer bases.

The most recent analyst rating on ($SE:HEXA.B) stock is a Hold with a SEK95.00 price target. To see the full list of analyst forecasts on Hexagon AB stock, see the SE:HEXA.B Stock Forecast page.

More about Hexagon AB

Hexagon AB is a Stockholm-based technology group focused on precision measurement, industrial metrology and manufacturing intelligence software for sectors such as aerospace, automotive and industrial manufacturing. Its platforms span hardware, CT analysis and visualisation, and production quality and data management tools used to improve productivity and quality on the factory floor.

YTD Price Performance: -13.68%

Average Trading Volume: 4,938,168

Technical Sentiment Signal: Sell

Current Market Cap: SEK253.7B

Learn more about HEXA.B stock on TipRanks’ Stock Analysis page.