Hexagon stock enters integration after Waygate deal closes

Hexagon completed its acquisition of Waygate Technologies from Baker Hughes on November 2, 2026, marking a new phase for the Swedish measurement technology group. The company said Waygate will operate within its Manufacturing Intelligence business area and was consolidated from November 1.

Hexagon described the transaction as a move into non-destructive testing and the maintenance, repair and operations market. The acquired business supplies industrial radiography, computed tomography, remote visual inspection, ultrasonic testing and imaging solutions. Its portfolio is intended to complement Hexagon's existing metrology software, measurement equipment and Volume Graphics offering.

In its acquisition announcement, Hexagon said Waygate generated revenue of 630 million US dollars in fiscal 2025 and employs approximately 1,500 people across 25 locations. The transaction gives Hexagon access to inspection applications that assess the inside of components as well as their external dimensions and surfaces.

Margins and integration are central tests

The strategic opportunity comes with an early profitability burden. On a fiscal 2025 pro forma basis, Hexagon said the acquisition reduces the Manufacturing Intelligence margin by approximately 300 basis points and the group 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.

Hexagon is financing the cash consideration with cash and existing debt facilities. The enterprise value is approximately 1.45 billion US dollars, while transaction, carve-out and integration costs are expected to total approximately 50 million euros. Pro forma leverage is approximately 1.4 times net debt to EBITDA based on third-quarter 2026 figures and the transactions included in that calculation.

For investors, the deal shifts attention from the closing itself to execution. The combined portfolio could give customers a broader inspection workflow, linking Waygate's testing technologies with Hexagon's software and dimensional measurement tools. The financial case will depend on whether those commercial links and operating improvements offset the initial margin dilution and integration expense.

Hexagon stock trades at 9.83 euros

Hexagon stock traded at 9.83 euros on Lang & Schwarz at 12:16 CET on Monday, November 9. Investors can follow the real-time quote of Hexagon stock during the session.

The acquisition is the latest step in Hexagon's effort to broaden its industrial technology platform. The company said the enlarged group has approximately 16,000 employees in 50 countries and annual net sales of approximately 3.7 billion euros. The next investor focus will be the first reporting periods that include Waygate's contribution and reveal how quickly the acquired operation moves toward Hexagon's margin target.

Swedish equities remain the relevant market backdrop for this Stockholm-listed company; investors can follow the OMXS30 market theme for broader market coverage.

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