Swedish sensor and measurement technology manufacturer Hexagon has agreed to acquire Waygate Technologies from energy technology firm Baker Hughes for approximately $1.45 billion in cash. The acquisition is intended to strengthen Hexagon's capabilities in the industrial non-destructive testing sector and provide critical sensing support for its ongoing humanoid robotics strategy. According to a statement released by Baker Hughes, the transaction will grant Hexagon access to Waygate Technologies' core technologies in remote visual inspection, ultrasound, radiography, and industrial computed tomography imaging. The deal is still subject to approval from relevant regulatory authorities and is expected to be completed in the second half of this year.
Hexagon produces sensors and mapping tools used to create digital representations of the physical world, with its technology widely applied by clients in industries such as mining, construction, agriculture, and manufacturing. The company has recently expanded into robotics and is developing a humanoid robot, which is already being tested by industrial customers including BMW Group. Waygate Technologies is a global leader in non-destructive testing and traces its origins to a pioneering brand with over 130 years of history in the field. Headquartered in Germany, the company operates from 25 locations worldwide, employs approximately 1,500 people, and generates annual revenue of around $630 million. Its business spans North America (30% of revenue), Europe (28%), Asia (34%), and other regions (8%).
The integration of Waygate Technologies, which includes brands such as phoenix|x-ray, is seen as a key move by Hexagon to address gaps in its internal inspection capabilities. By incorporating Waygate's X-ray and ultrasonic technologies, Hexagon will be able to offer comprehensive quality inspection solutions—from external contours to internal pores and cracks—for components such as aircraft engine blades, new energy vehicle power batteries, and additive manufacturing parts. Hexagon CEO Anders Svensson described the acquisition as a "natural and exciting evolution" of the company's Manufacturing Intelligence division strategy. As companies increase investment in automation, merger and acquisition activity involving sensor firms has become more active. With the growing digitization of factories, infrastructure, and cities, demand is rising for technologies that can capture real-time data and feed it into software models for analysis.
For Baker Hughes, a major energy technology company, the sale of Waygate represents a step toward divesting non-core assets and raising capital to focus on energy transition and core operations. The business's operating profit margin of around 10% is relatively low compared to Hexagon's Manufacturing Intelligence division average. However, the $1.45 billion cash injection will significantly enhance the flexibility of Baker Hughes' balance sheet.
Comments