Hexagon signed an agreement to acquire geotechnical and engineering analysis software company Rocscience for an enterprise value of $535 million on a cash-free, debt-free basis.
Hexagon is acquiring the Toronto-based company from TA Associates and Rocscience’s founders and management.
Rocscience will become part of the Radar & Monitoring Division within Hexagon’s Infrastructure & Geospatial Business Area.
The company’s software helps engineers model the behavior of rock, soil, and structures under different conditions.
Its technology is used for applications including slope stability, ground movement, tunnels, dams, mines, and other critical infrastructure.
Rocscience serves mining, civil engineering, and energy customers in approximately 125 countries.
Its platform also includes AI-assisted workflows and a natural-language interface intended to make advanced engineering modeling easier to use.
Hexagon plans to combine Rocscience’s simulation technology with its existing sensor and radar monitoring systems.
Hexagon’s sensors continuously measure real-world conditions, while Rocscience software predicts how geological environments and structures may behave.
The companies intend to establish a feedback loop in which sensor data can automatically update and calibrate engineering models during design, construction, and operations.
Rocscience is expected to generate close to $50 million of revenue in 2026, with annual recurring revenue representing more than 80% of revenue.
The company has EBITAC margins above 40%.
Hexagon expects the transaction to be accretive to net income immediately after closing.
Completion is expected during the fourth quarter of 2026, subject to customary conditions.
KEY QUOTE:
“By connecting what our sensors measure with how Rocscience’s models predict, we can help customers move from data capture to informed action with far greater confidence.”
Henning Sandfort, President of Infrastructure & Geospatial at Hexagon
