Hexagon Acquires Waygate Technologies for $1.45 Billion, Expanding into Non-Destructive Testing
Event summary
- Hexagon to acquire Waygate Technologies for $1.45 billion, expanding into non-destructive testing (NDT).
- Waygate generated $630 million in revenue in 2025 with a 10% EBIT margin.
- Radiography and Remote Visual Inspection businesses classified as Profitability and Growth assets, respectively.
- Ultrasonic Testing and Imaging Solutions classified as Stability assets, with Hexagon pursuing performance improvement strategies.
- Transaction expected to close in the second half of 2026, subject to regulatory approvals.
The big picture
Hexagon's acquisition of Waygate Technologies marks a significant expansion into the non-destructive testing market, extending its precision measurement capabilities from surface to interior component inspection. This strategic move positions Hexagon to serve high-value sectors like aerospace, automotive, and battery manufacturing with a more comprehensive quality assurance offering. The deal underscores Hexagon's focus on driving margin improvement and leveraging synergies across its combined customer base.
What we're watching
- Margin Expansion
- Whether Hexagon can drive Waygate's margins towards its Manufacturing Intelligence group averages through manufacturing localisation and revenue synergies.
- Strategic Integration
- How Hexagon will integrate Waygate's NDT expertise with its existing precision measurement portfolio and software capabilities.
- Market Positioning
- The pace at which Hexagon can establish itself as a leading global provider of NDT solutions and pursue further bolt-on opportunities in the broader NDT market.
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