Hexagon has completed its acquisition of Waygate Technologies from Baker Hughes in a transaction carrying an enterprise value of approximately $1.45 billion.
The acquisition expands Hexagon’s Manufacturing Intelligence business into non-destructive testing and the maintenance, repair, and operations market.
Waygate provides industrial radiography, computed tomography, remote visual inspection, ultrasonic testing, and imaging technologies.
The company has approximately 1,500 employees across 25 locations and generated roughly $630 million in revenue during fiscal 2025.
Waygate brings more than 130 years of inspection expertise to Hexagon.
Combining Waygate’s computed tomography systems with Hexagon’s Volume Graphics software and metrology technologies is intended to create a more comprehensive inspection and quality platform spanning the product lifecycle.
Waygate became consolidated into Hexagon’s financial results as of November 1, 2026, and will operate within the Manufacturing Intelligence Business Area.
Hexagon financed the cash consideration through existing cash and debt facilities.
Following the transaction, the company estimates pro forma leverage of approximately 1.4 times net debt to EBITDA based on third-quarter 2026 figures and including several other acquisitions.
Hexagon expects approximately €50 million of transaction, carve-out, and integration costs related to Waygate.
On a fiscal 2025 pro forma basis, the acquisition initially dilutes the Manufacturing Intelligence Business Area margin by about 300 basis points and Hexagon’s overall group margin by approximately 150 basis points.
A central part of Hexagon’s value creation plan is increasing Waygate’s profitability toward Manufacturing Intelligence’s 21% to 24% EBITAC margin target.
Initiatives include implementing Hexagon’s operating model, localizing manufacturing, cross-selling products, and potentially optimizing the portfolio.
KEY QUOTES:
“Completing this acquisition marks the start of an exciting new chapter for Hexagon Manufacturing Intelligence Business Area.”
“Waygate Technologies brings world-class inspection technology and loyal customer relationships.”
Anders Svensson, President And CEO Of Hexagon
