This article first appeared on GuruFocus .
Hexagon AB ( HXGBY ) agreed to acquire Waygate Technologies from Baker Hughes ( NASDAQ:BKR ) for about $1.45 billion in cash, a move that could deepen its exposure to industrial inspection technologies as demand for automation continues to build. The transaction, which is subject to regulatory approvals and expected to close in the second half of the year, would give Hexagon access to a suite of capabilities including remote visual inspection, ultrasound, radiography, and imaging. These tools are widely used across energy, aerospace, and automotive industries, where operators rely on non-destructive testing methods to detect defects without interrupting operations or damaging equipment.
The acquisition appears aligned with a broader shift toward digitization, as companies invest in technologies that can capture real-time data and feed it into software models for analysis. Waygate's specialization in non-destructive testing could complement Hexagon's existing sensor and mapping portfolio, which is used to create digital representations of physical environments across sectors such as mining, construction, agriculture, and manufacturing. The combination may also support Hexagon's push into robotics, where it has been developing a humanoid system tested by industrial clients including BMW AG, potentially expanding how inspection and measurement tasks are automated.
Waygate generated revenue of $630 million and EBITDA of $83 million last year, and Hexagon indicated it sees an opportunity for meaningful margin improvement over the medium term, suggesting integration and efficiency gains could be a focus after closing. Hexagon plans to finance the deal using cash and existing debt facilities. In early trading in Stockholm on Monday, Hexagon shares fell 0.9% to 93.72 kronor, while Baker Hughes has risen 38% this year through Friday, reflecting differing market performance even as both companies reposition around evolving industrial technology demand.
