Hexagon stock absorbs Waygate in USD 1.45 billion deal

Hexagon completed its acquisition of Waygate Technologies from Baker Hughes on Monday, November 2, 2026. The Swedish measurement technology group said the transaction expands its Manufacturing Intelligence business into non-destructive testing and maintenance, repair and operations markets.

According to Hexagon, Waygate generated revenue of approximately 630 million US dollars in fiscal 2025 and has approximately 1,500 employees across 25 locations. Its portfolio includes industrial radiography, computed tomography, remote visual inspection, ultrasonic testing and imaging.

New Inspection Platform, Lower Starting Margins

The acquisition combines Waygate's computed tomography systems with Hexagon's Volume Graphics software and metrology portfolio. The stated aim is an end-to-end inspection and quality offering covering the product lifecycle, from manufacturing to maintenance.

Hexagon said the transaction dilutes the Manufacturing Intelligence business area's fiscal 2025 pro forma margin by approximately 300 basis points and the group's margin by approximately 150 basis points. Management is targeting a 21% to 24% EBITAC margin for Waygate through Hexagon's operating model, localized manufacturing, cross-selling and potential portfolio optimization.

Waygate was consolidated into Hexagon's accounts from November 1 and will operate within Manufacturing Intelligence. The enterprise value is approximately 1.45 billion US dollars on a cash- and debt-free basis. Hexagon is financing the cash consideration with cash and existing debt facilities, while pro forma leverage is approximately 1.4 times net debt to EBITDA based on third-quarter 2026 figures and other transactions.

Hexagon Stock Awaits Integration Execution

Hexagon stock traded at 10.01 euros on Lang & Schwarz at 12:33 p.m. CET on Wednesday, November 4, 2026. The quote places the focus on the integration phase: investors must weigh the broader inspection portfolio against the initial margin dilution and the estimated transaction, carve-out and integration costs of approximately 50 million euros.

Hexagon's acquisition adds hardware, software and service capabilities in industrial inspection, but the financial contribution will depend on how quickly Waygate approaches the target margin range. The company has not announced a separate earnings contribution for the acquired business in the release.

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More company updates will show whether Hexagon can lift Waygate toward the Manufacturing Intelligence margin target while expanding its recurring industrial inspection business. More news and analyses on Hexagon stock.