Key Takeaways

• Hexagon has finalized the purchase of Waygate Technologies for an enterprise value of ≈ $1.45 bn (cash‑ and debt‑free).
• Waygate adds ≈ 1,500 staff, 25 sites, and $630 m FY‑2025 revenue to Hexagon’s Manufacturing Intelligence (MI) portfolio.
• The deal lowers MI’s pro‑forma EBIT‑margin by ~300 bps and Hexagon Group margin by ~150 bps, but targets a 21‑24 % EBIT‑AC margin for Waygate within 2‑3 years.
• Combined CT hardware and Hexagon’s Volume Graphics software create a full‑life‑cycle inspection suite covering radiography, CT, RVI and ultrasonic testing.
• Pro‑forma net‑debt/EBITDA is projected at 1.4× after accounting for the transaction, recent acquisitions, and integration costs of ≈ €50 m.

Hexagon Closes $1.45 bn Purchase of Waygate Technologies

Background

Hexagon announced the completion of its previously disclosed acquisition of Waygate Technologies, a long‑standing specialist in non‑destructive testing (NDT). Waygate, formerly owned by Baker Hughes, brings more than 130 years of inspection know‑how to Hexagon’s Manufacturing Intelligence Business Area (MI).

What Waygate Delivers

Source: Waygate product datasheets (2025)

Strategic Fit

The acquisition expands Hexagon’s MI suite from metrology and quality control into the maintenance‑repair‑operations (MRO) arena. By pairing Waygate’s CT platforms with Hexagon’s Volume Graphics visualization engine, customers gain an end‑to‑end workflow—from raw scan data to AI‑driven defect classification—covering the entire product lifecycle.

Margin Impact

• Pro‑forma MI EBIT margin: down ≈ 300 bps (from 22 % to ~19 %).
• Group EBIT margin: down ≈ 150 bps (from 27 % to ~25.5 %).

Hexagon plans to lift Waygate’s margin into the MI target range of 21‑24 % EBIT‑AC through:

1. Adoption of Hexagon’s lean operating model.
2. Localized manufacturing to reduce logistics cost.
3. Cross‑selling of MI software to Waygate’s installed base.
4. Portfolio rationalization where overlapping product lines exist.

Transaction Economics

• Enterprise Value: $1.45 bn (cash‑free, debt‑free).
• Financing: Cash consideration funded via existing cash balances and revolving credit facilities.
• Pro‑forma leverage: 1.4× net‑debt/EBITDA (Q3 2026), inclusive of recent purchases of Guidance Marine, ZG Technologies, and the announced Rocscience deal.
• Integration & carve‑out costs: Estimated at €50 m (≈ $54 m).

Waygate was legally consolidated into Hexagon on 1 Nov 2026 and now reports under the MI Business Area. Detailed historical financials, including Waygate’s contribution, are available in Hexagon’s investor‑relations appendix.

Market Implications

• Competitive Edge: Hexagon becomes one of the few global players offering a seamless hardware‑software NDT ecosystem, challenging incumbents such as GE Inspection Technologies and Olympus.
• Revenue Synergy: Waygate’s $630 m FY‑2025 revenue adds a new high‑margin stream, potentially offsetting the short‑term margin dilution.
• Customer Reach: Combined sales force expands coverage in aerospace, oil & gas, heavy manufacturing, and rail sectors, where stringent inspection standards drive spend on advanced NDT solutions.

Bottom Line

Hexagon’s $1.45 bn acquisition of Waygate Technologies marks a decisive move into the non‑destructive testing and MRO markets. While the deal trims short‑term margins, the integration of Waygate’s CT, radiography, RVI, and ultrasonic platforms with Hexagon’s Volume Graphics and metrology software creates a powerful, end‑to‑end inspection offering. If Hexagon can realize its margin‑improvement roadmap—targeting a 21‑24 % EBIT‑AC margin for Waygate—the acquisition should generate meaningful top‑line growth and deepen the company’s foothold in high‑value industrial inspection.