Hexagon stock absorbs Waygate in USD 1.45 billion deal

Hexagon completed its acquisition of Waygate Technologies from Baker Hughes on November 2, 2026, marking a significant expansion of its industrial inspection business. In its Hexagon press release, the Swedish measurement technology group said Waygate had been consolidated from November 1 and would operate within the Manufacturing Intelligence business area.

Waygate broadens industrial inspection

Waygate supplies industrial radiography, computed tomography, remote visual inspection, ultrasonic testing and imaging solutions for non-destructive testing. The business has approximately 1,500 employees across 25 locations and generated approximately USD 630 million in fiscal 2025 revenue, according to Hexagon.

The acquisition extends Hexagon's offering from external measurement and metrology toward the inspection of a component's internal structure and integrity. Hexagon said combining Waygate's computed tomography systems with its Volume Graphics software and metrology portfolio should create an end-to-end inspection and quality offering across the product lifecycle.

Margin dilution sets execution task

Hexagon said the transaction dilutes the Manufacturing Intelligence business area's fiscal 2025 pro forma margin by approximately 300 basis points. At group level, the pro forma dilution is approximately 150 basis points. Management aims to lift Waygate's profitability into the Manufacturing Intelligence target range of 21% to 24% EBITAC margin through Hexagon's operating model, localized manufacturing, cross-selling and possible portfolio optimization.

The enterprise value is approximately USD 1.45 billion on a cash-free and debt-free basis. Hexagon is financing the cash consideration with cash and existing debt facilities. Including the transaction and other acquisitions, pro forma leverage is approximately 1.4 times net debt to EBITDA based on third-quarter 2026 figures. Hexagon expects transaction, carve-out and integration costs of approximately EUR 50 million.

Stock context and next steps

Hexagon stock traded at 10.20 euros on Lang & Schwarz at 12:16 CET on Thursday, November 5, 2026.

For investors, the transaction adds a new growth platform but also places execution and margin recovery at the center of the investment case. The immediate financial contribution will need to be weighed against the initial margin dilution, financing needs and integration costs as Waygate enters Hexagon's consolidated results.

Hexagon's real-time quote of Hexagon stock provides the latest trading reference for the share.

The broader OMXS30 market environment remains relevant for the valuation of Swedish industrial shares.

More news and analyses on Hexagon stock will track the integration of Waygate and its effect on margins.