-- Acquisition establishes Hexagon as a leading global provider of 
      non-destructive testing (NDT) solutions, extending precision measurement 
      from the surface to the inside of components and broadening Hexagon's 
      footprint from the production floor into the maintenance, repair and 
      operations (MRO) market 
 
   -- Waygate Technologies is a global market leader in computed tomography 
      (CT), radiography, and remote visual inspection $(RVI)$, with approximately 
      $630 million in revenue and 1,500 employees across 25 locations 
 
   -- Radiography and Remote Visual Inspection businesses classified as 
      Profitability and Growth assets within Hexagon's operating model, 
      combining best-in-class NDT hardware with Hexagon's leading CT analysis, 
      visualisation, and production quality software 
 
   -- Ultrasonic Testing and Imaging Solutions classified as Stability assets; 
      Hexagon will pursue strategies to improve performance, which may include 
      strategic reviews 
 
   -- Transaction valued at approximately $1.45 billion; Waygate generated 
      around $630 million in revenue at a 10% EBIT1 margin in fiscal year 2025. 
 
   -- The market-leading Radiography and RVI platforms generated around $330 
      million in revenue at a 16% EBIT1 margin, with a clear value creation 
      pathway to drive margins toward Hexagon MI Business Area averages[1] 

STOCKHOLM, April 13, 2026 /PRNewswire/ -- Hexagon AB today announced that it has signed a definitive agreement to acquire Waygate Technologies, a leading provider of non-destructive testing solutions, from Baker Hughes. Waygate Technologies serves customers across aerospace, automotive, energy, and industrial manufacturing sectors globally, and brings with it a portfolio of market-leading inspection technologies that integrate naturally with Hexagon's existing precision measurement hardware, CT analysis and visualisation software, and production quality and data management platforms.

The acquisition marks a significant expansion of Hexagon's Manufacturing Intelligence $(MI)$ Business Area into the NDT market -- a space Hexagon views as a natural evolution of its core precision measurement capabilities, extending quality assurance from the surface of a component to its interior geometry. Alongside the attractive expansionary market opportunity and the strategic fit, the transaction represents a compelling value creation opportunity, with a clear pathway to materially improve Waygate's margins through strategic actions, manufacturing optimisation, China localisation, and revenue synergies across the combined customer base.

"This acquisition is a natural and exciting evolution of Hexagon Manufacturing Intelligence's strategy," said Anders Svensson, President and CEO of Hexagon. "Waygate Technologies brings world-class inspection technology and deeply loyal customer relationships in markets that are highly complementary to our own. By combining Waygate's NDT expertise with Hexagon's precision measurement portfolio, software capabilities, and global infrastructure, we will create a uniquely integrated offering that helps our customers achieve higher quality, greater efficiency, and improved confidence across the full product lifecycle. We also see a significant opportunity to create value by applying Hexagon's operating model, which is built on driving closeness to customers via accountability and strong performance management, to Waygate's businesses and driving meaningful margin improvement over the medium term. I look forward to welcoming the Waygate team to Hexagon and working together to drive future profitable growth."

About Waygate Technologies

Waygate Technologies is a global leader in non-destructive testing, built on more than 130 years of combined heritage across pioneering NDT brands. Headquartered in Germany and operating across 25 locations worldwide, the business employs approximately 1,500 people and generates approximately $630 million in annual revenue, with a presence spanning North America (30% of revenue), Europe (28%), Asia (34%) and Rest of World (8%).

Waygate comprises four business units. Consistent with Hexagon's operating model -- which assigns the strategic mandates of Growth, Profitability or Stability to each Division reflecting their current performance, the businesses are classified as follows:

   -- Radiography (Profitability): A globally market-leading portfolio of 2D 
      X-ray and 3D computed tomography (CT) systems used for internal part 
      inspection, dimensional metrology, and defect detection. Waygate's CT 
      systems are known for their superior image quality and are supported by 
      deep in-house capabilities including proprietary X-ray tube 
      manufacturing. Key end markets include aerospace, automotive, electronics, 
      battery manufacturing, and materials science. Radiography is assigned a 
      Profitability mandate given the significant margin expansion opportunity 
      available through manufacturing localisation and cross-sell synergies 
      with Hexagon's existing CMM and software portfolio. 
 
   -- Remote Visual Inspection (RVI) (Growth): The global number-one provider 
      of high-end video borescopes and remote visual inspection technology, 
      combining premium hardware with advanced 3D measurement and defect 
      characterisation capabilities. The RVI business primarily serves 
      aerospace MRO customers, enabling inspection of aircraft jet engines 
      without the need for disassembly -- a highly specialised application with 
      significant barriers to entry. RVI has a strategic Growth mandate 
      reflecting its already strong margin profile and market-leading position. 

Stability -- Performance Improvement Opportunities

The following two businesses are classified as Stability assets within Hexagon's business portfolio either due to lack of strategic fit or current financial performance. Hexagon will pursue strategies to improve performance across these businesses, including exploring all strategic options:

   -- Ultrasonic Testing (UT): A broad offering of conventional and phased 
      array ultrasonic inspection solutions, spanning portable handheld devices 
      and stationary automated systems. Products are used for subsurface flaw 
      detection, corrosion monitoring, weld inspection, and composite material 
      testing across industrial, aerospace, and energy applications. 
 
   -- Imaging Solutions: A provider of industrial X-ray films, digital 
      radiography systems, computed radiography scanners, and supporting 
      software for image analysis and data management. The business serves oil 
      and gas, power generation, aerospace, and industrial customers requiring 
      high-quality 2D radiographic inspection solutions. 

Strategic Rationale

The combination of Waygate Technologies with Hexagon Manufacturing Intelligence creates a uniquely integrated precision measurement and inspection platform, bringing together Hexagon's world-class metrology hardware, software, and data analytics capabilities with Waygate's leading NDT portfolio. Key strategic benefits of the combination include:

   -- A complete measurement solution, from surface to interior: Hexagon's 
      existing coordinate measuring machine (CMM) and metrology software 
      portfolio is highly complementary to Waygate's CT and radiography 
      systems. Customers in sectors such as aerospace, automotive, and battery 
      manufacturing increasingly require both surface and internal inspection 
      as part of a unified quality workflow. The combined business will be 
      uniquely positioned to serve this demand as a single, integrated partner. 
 
   -- CT hardware and software integration: Waygate's CT platforms integrate 
      directly with Hexagon's industry-leading Volume Graphics CT analysis and 
      visualisation software, creating a compelling end-to-end CT metrology 
      offering. This combination brings together best-in-class hardware and 
      software under one roof and opens up new opportunities to drive value 
      across both customer bases. 
 
   -- Significant margin improvement opportunity: Waygate's current margins are 
      below those typical of Hexagon MI's portfolio. Hexagon sees a clear 
      pathway to bring margins towards MI group averages (excluding the 
      recently sold D&E business), particularly in the Radiography division, 
      through a combination of manufacturing localisation -- particularly by 
      leveraging Hexagon's existing China infrastructure to produce CT systems 
      closer to market -- and revenue synergies from cross-selling CT solutions 
      alongside CMMs into Hexagon's global installed base. These initiatives 
      are expected to drive meaningful gross margin expansion and operating 
      cost leverage over the medium term. It will also pursue strategies to 
      improve performance across the businesses with Stability mandates, 
      including exploring all strategic options. 
 
   -- Entry into the Aerospace MRO market: Waygate's RVI business provides a 
      market-leading platform in the high-value aviation maintenance, repair 
      and overhaul (MRO) sector. This diversifies Hexagon MI's revenue exposure 
      into recurring asset integrity testing markets, which are driven by fleet 
      utilisation and regulatory requirements rather than capital investment 
      cycles. 
 
   -- A platform for further growth: The acquisition establishes Hexagon as a 
      credible and well-resourced participant in the broader NDT market, with 
      the scale and technology depth to pursue further bolt-on opportunities 
      across adjacent inspection modalities. 

Financial Details

(MORE TO FOLLOW) Dow Jones Newswires

April 13, 2026 02:54 ET (06:54 GMT)